Given below is a summary of a businesss performance for the first three months:

	Jan	Feb	Mar
	AED000	AED000	AED000
Revenue	400	480	450
Cost of Sales	210	270	260
Expenses	140	144	141
Interest	-	-	-
Shareholders Funds	240	290	319
Loan	-	-	-

For each month of the year, complete the table to calculate the following performance indicators:

	Jan	Feb	Mar
Gross profit margin	400-210 = 190	480-270 = 210	450-260 = 190
Net profit margin	190-140 = 50	210 - 144 = 66	190 - 141 = 49
% expenses to revenue	(140/400)*100 = 35%	(144/480)*100 =30%	(141/450)*100 = 31.33%
Return on capital employed	(50/240 )*100 =20.83%	(66/290)*100 = 22.76%	(49/319)*100 = 15.36%

Required

a- Comment on what the performance measures indicate about the business activities for the first 3 months

b- Explain the limitations of the above analysis

Note : Answers should be in Word Version - In your own words explained