11. Amina has a jewellery business in a well-established shop. Her most recent income statement shows the following key figures: This year Last year Sales 600,000 500,000 Cost of goods sold 350,000 300,000 Gross profit 250,000 200,000 A recent survey by the trade association shows that average sales in the sector increased by 17.3% from a year earlier and the average gross profit margin of firms in the sector was 38.3%. Which one of the following is TRUE? (A). Amina has a higher than average increase in sales, and a lower than average gross profit margin. (B). Amina has a lower than average increase in sales, and a higher than average gross profit margin. (C). Amina has a higher than average increase in sales and a higher than average gross profit margin. (D). Amina has a lower than average increase in sales, and a lower than average gross profit margin.

11. Amina has a jewellery business in a well-established shop. Her most recent income statement shows the following key figures: This year Last year Sales 600,000 500,000 Cost of goods sold 350,000 300,000 Gross profit 250,000 200,000 A recent survey by the trade association shows that average sales in the sector increased by 17.3% from a year earlier and the average gross profit margin of firms in the sector was 38.3%. Which one of the following is TRUE? (A). Amina has a higher than average increase in sales, and a lower than average gross profit margin. (B). Amina has a lower than average increase in sales, and a higher than average gross profit margin. (C). Amina has a higher than average increase in sales and a higher than average gross profit margin. (D). Amina has a lower than average increase in sales, and a lower than average gross profit margin.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter2: Analysis Of Financial Statements

Section: Chapter Questions

Problem 12PROB

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bartleby, a Learneo, Inc. business

	This year	Last year
Sales	600,000	500,000
Cost of goods sold	350,000	300,000
Gross profit	250,000	200,000

(A). Amina has a higher than average increase in sales, and a lower than average gross profit margin.
(B). Amina has a lower than average increase in sales, and a higher than average gross profit margin.
(C). Amina has a higher than average increase in sales and a higher than average gross profit margin.
(D). Amina has a lower than average increase in sales, and a lower than average gross profit margin.