Page 15 - A Level Business Studies - Financial Analysis Tasks

Profit for the Year %
Profitability Ratios;

Profit for the Year as a % of Sales
Indicates how well a business controls its expenses. It measures the profit for the year in
relation to Sales Revenue and is shown as a %. The higher the %, the better
Profit for the Year
Sales Revenue

Task 3.a
Look at the S Whyte's Income Statement and calculate the Profit for the Year Margin.

Income Statement for S Whyte - Sole Trader Profit for the Year
£ £ Margin (%)

Sales Revenue 456,443
Less Cost of Sales 243,567

Gross Profit 212,876

Less Expenses
Wages 97,678
Insurance 4,534
Advertising 31,456

Heat & Light 8,789 142,457

Profit for the Year 70,419

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