Threads Limited manufactures nuts and bolts, which are sold to industrial users. The abbreviated financial statements for each of the last two years are as follows: Income statements for the year ended 31 December Year before last Last year 000 000 Revenue 1,180 1,200 Cost of sales (680) (750) Gross profit 500 450 Operating expenses (200) (208) Depreciation (66) (75) Operating profit 234 167 Interest ( (8) Profit before taxation. 234 159 Taxation (80) (48) Profit for the year 154 111 2