Page 11 - A Level Business Studies - Financial Analysis Tasks
P. 11
Operating Profit %
Profitability Ratios;
Operating Profit %
Operating Profit
Sales Revenue
Task 2.a
Look at the Income Statement and calculate the Operating Profit Percentage.
INCOME STATEMENT FOR BRENTWOOD LTD Operating Profit as a
YEAR ENDED 31 MARCH 20XX % of Sales Revenue
£
SALES REVENUE 154,678
Cost of Sales 71,345
GROSS PROFIT 83,333
Operating Expenses 42,378
OPERATING PROFIT 40,955
Other Expenses 23,789
PROFIT BEFORE TAX 17,166
Tax on profit 3,433
PROFIT FOR THE YEAR 13,733
Dividends paid 10,000
RETAINED PROFIT AT 31 DECEMBER 3,733
Task 2.b
Look at the Income Statement and calculate the Operating Profit Percentage.
INCOME STATEMENT FOR ABC INDUSTRIES LTD Operating Profit as a
YEAR ENDED 31 MARCH 20XX % of Sales Revenue
£
SALES REVENUE 876,190
Cost of Sales 481,234
GROSS PROFIT 394,956
Operating Expenses 200,678
OPERATING PROFIT 194,278
Other Expenses 74,890
PROFIT BEFORE TAX 119,388
Tax on profit 23,878
PROFIT FOR THE YEAR 95,510
Dividends paid 50,000
11 | P a g e 45,510 © B u i l d Y o u r S k i l l 2 0 2 0
RETAINED PROFIT AT 31 DECEMBER
