The income statement of Carlson Company for the year ended March 31, 2012 are as follows: (in million of pesos) 2012 2011 Sales P 320.5 P305.4 Cost of sales 274.1 253.9 Gross profit 46.4 51.5 Distribution costs 11.6 10.4 Administrative expenses 22.6 23.5 Other operating income 4.5 6.4 Earnings before interest and taxes 16.7 24.0 .Interest charges 1.9 4.3 .Earnings before taxes 14.8 19 .7 Which of the following is correct? a. The company sold more goods by volume in 2012 than in 2011. b. The gross margin as a percentage of sales was higher in 2012 than in 2011. c. The increase in distribution costs in 2012 over and above the 2011 amount is due to the higher sales turnover. d. The net profit margin as a percentage of sales fell in 2012 and about 2/3 of the 2011 level.
The income statement of Carlson Company for the year ended March 31,
2012 are as follows:
|
(in million of pesos) |
|
|
|
2012 |
2011 |
|
|
Sales |
P 320.5 |
P305.4 |
|
Cost of sales |
274.1 |
253.9 |
|
Gross profit |
46.4 |
51.5 |
|
Distribution costs |
11.6 |
10.4 |
|
Administrative expenses |
22.6 |
23.5 |
|
Other operating income |
4.5 |
6.4 |
|
Earnings before interest and taxes |
16.7 |
24.0 |
|
.Interest charges |
1.9 |
4.3 |
|
.Earnings before taxes |
14.8 |
19 |
Which of the following is correct?
a. The company sold more goods by volume in 2012 than in 2011.
b. The gross margin as a percentage of sales was higher in 2012 than in 2011.
c. The increase in distribution costs in 2012 over and above the 2011 amount is
due to the higher sales turnover.
d. The net profit margin as a percentage of sales fell in 2012 and about 2/3 of
the 2011 level.
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