The financial statements of Anglo American Platinum Limited (Amplats) are presented in Appendix B following the financial

Question:

The financial statements of Anglo American Platinum Limited (Amplats) are presented in Appendix B following the financial statements for Eastern Platinum Limited (Eastplats) in Appendix A.

Instructions

(a) Determine the following values for each company for 2010 and 2009:

1. Percentage change in net sales revenue for Amplats and revenue for Eastplats from 2009 to 2010

2. Percentage change in operating profit from 2009 to 2010

3. Gross profit margin (use "gross profit on metal sales" for Amplats and "mine operating earnings" for Eastplats)

4. Profit margin

(b) What conclusions about the relative profitability of the two companies can be drawn from these data?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...