Using the information given about Elegance Jewellers Inc., analyze the company's financial position in detail (include the causes for the data listed)

ELEGANCE JEWELLERS INCORPORATED VERTICAL ANALYSIS 2012 2011 Sales Cost of Sales Gross Profit Operating Expenses 100.00% 47 70% 52.30% 100.00% 45.00% 55.00% 36.00% 270% 38.70% 33.90% 2.60% 36.50% Selling & Admin Depreciation Total Op. Expenses Operating Profit Unusual Income Subtotal less: Interest Expense Net Profit b4 tax Income Taxes 13.60% -0,60% 13.00% 7.70% 5.30% 1.30% 18.50% -0.60% 17.90% 2.00% 15.90% 4,00% Net Eanings after tax 4.00% 11 .90% Return on Equity 10.81% 29.18%