Explain the data provided
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Explain the data provided.
Transcribed Image Text:O 0 o o
GROSS PROFIT RATIO
2019
2020
Gross Profit Ratio
0.36
0.31
Gross Profit
P173,319,000|
P117,556,000
P377,149,000
Net Sales
P475,931,000
In 2019, for every peso earned after deducting the cost of sales, 0.36
was the profit or increase in the price of the product when it was
sold. While in 2020, the ratio was decreased by 0.05.
The higher the ratio, the better.
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