Page 7 - A Level Business Studies - Financial Analysis Tasks
P. 7
Gross Profit %
Profitability Ratios;
Gross Profit as a % of Sales
Used to calculate what the Gross Profit is in relation to the Sales. It shows the
profit from buying and selling stock. The higher the %, the better
Gross Profit
Sales Revenue
Task 1.a
Look at the first part of Jenni's Income Statement and calculate the Gross Profit Percentage.
Income Statement for Jenni's Flower Shop Gross Profit as a % of
£ Sales Revenue
Sales Revenue 200,000
Less Cost of Sales
Purchases 50,000
Gross Profit 150,000
Task 1.b
Look at the first part of Carolla Coffee Shop's Income Statement and calculate the Gross Profit
Percentage.
Income Statement for the Carolla Coffee Shop Gross Profit as a % of
£ Sales Revenue
Sales Revenue 120,000
Less Cost of Sales
Purchases 60,000
Gross Profit 60,000
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