Here is the condensed statement of financial performance of the three companies for the year ended December 31, 2014. Solve for the profitability ratio. JFC Petron Globe Sales Revenue 90,671 482,535 103,235 Cost of Sales/Service (73,728) (463,100) (10,661) Gross Margin 16,943 19,435 92,574 Operatir.g Expenses (10,806) (11,830.00) (59,506) Operating Profit 6,137 7,605 33,068 Other Income 748 1,736 1,255 Other Expenses (126) (5,528) (14,940) Net Inicome before Tax 6,759 3,813 19,383 Income Tax (1,271) (804) (6,011) Not Income after Tax 5,488 3,009 13,372 2. Compare the three companies using the ratios computed. 3. What are the possible reasons why the sample cormpanies have different ratios, What could have possibly caused these differences? What are the implications?

Here is the condensed statement of financial performance of the three companies for the year ended December 31, 2014. Solve for the profitability ratio. JFC Petron Globe Sales Revenue 90,671 482,535 103,235 Cost of Sales/Service (73,728) (463,100) (10,661) Gross Margin 16,943 19,435 92,574 Operatir.g Expenses (10,806) (11,830.00) (59,506) Operating Profit 6,137 7,605 33,068 Other Income 748 1,736 1,255 Other Expenses (126) (5,528) (14,940) Net Inicome before Tax 6,759 3,813 19,383 Income Tax (1,271) (804) (6,011) Not Income after Tax 5,488 3,009 13,372 2. Compare the three companies using the ratios computed. 3. What are the possible reasons why the sample cormpanies have different ratios, What could have possibly caused these differences? What are the implications?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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