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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:

  1. Calculate the Gross Profit Margin for each year.
  2. Determine the Operating Profit Margin for each year.
  3. Compute the Net Profit Margin for each year.
  4. Analyze the trend in profitability over the three years.

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