Question
Company ABC is a multinational corporation that manufactures and sells consumer electronics. Below is the comparative financial data for the last three years. Description 2021
Company ABC is a multinational corporation that manufactures and sells consumer electronics. Below is the comparative financial data for the last three years.
Description | 2021 | 2020 | 2019 |
Sales | $1,500,000 | $1,200,000 | $1,000,000 |
Cost of Goods Sold | $900,000 | $720,000 | $600,000 |
Gross Profit | $600,000 | $480,000 | $400,000 |
Selling Expenses | $150,000 | $120,000 | $100,000 |
Administrative Expenses | $100,000 | $80,000 | $60,000 |
Total Expenses | $250,000 | $200,000 | $160,000 |
Income Before Taxes | $350,000 | $280,000 | $240,000 |
Income Tax Expense | $70,000 | $56,000 | $48,000 |
Net Income | $280,000 | $224,000 | $192,000 |
Requirements:
- Calculate the Gross Profit Margin for each year.
- Determine the Operating Profit Margin for each year.
- Compute the Net Profit Margin for each year.
- Analyze the trend in profitability over the three years.
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