From the following information, interpret the concern, using Trend Ratios. Particulars Sales (Net) Less: Cost of goods sold Gross Profit Less: Operating expenses Net Operating Profit Less: Taxes Profit after tax 2018 100 60 40 10 30 15 15 2019 90 60 30 10 20 10 10 Amount (Rs. In Lakhs) 2021 150 80 70 20 50 25 25 2020 120 70 50 15 35 17.5 17.5

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
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7. From the following information, interpret the result of operations of a manufacturing
concern, using Trend Ratios.
Particulars
Sales (Net)
Less: Cost of goods sold
Gross Profit
Less: Operating expenses
Net Operating Profit
Less: Taxes
Profit after tax
2018
100
60
40
10
30
15
15
2019
90
60
30
10
20
10
10
Amount (Rs. In Lakhs)
2020
2021
120
70
50
15
35
17.5
17.5
150
80
70
20
50
25
25
Transcribed Image Text:7. From the following information, interpret the result of operations of a manufacturing concern, using Trend Ratios. Particulars Sales (Net) Less: Cost of goods sold Gross Profit Less: Operating expenses Net Operating Profit Less: Taxes Profit after tax 2018 100 60 40 10 30 15 15 2019 90 60 30 10 20 10 10 Amount (Rs. In Lakhs) 2020 2021 120 70 50 15 35 17.5 17.5 150 80 70 20 50 25 25
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