Business functions

Instructions

Complete the tables for both businesses by filling in the GPM and NPM and then answer the questions.

Ratio analysis PDF – Page 1

Complete the tables for both businesses by filling in the GPM and NPM and then answer the questions.

$\frac{Gross profit}{Revenue} \times \frac{100}{1} \frac{Net profit}{Revenue} \times \frac{100}{1}$

Revenue and profit data	(£000)
Greenacres Garden Supplies Ltd	2011	2012	2013	2014	2015
Revenue	50	50	60	65	75
Gross profit	15	20	22	24	30
Net profit	9	10	12	12	14
GPM	...... %	...... %	...... %	...... %	...... %
NPM	...... %	...... %	...... %	...... %	...... %

GPM	30%	40%	36.6%	36.9%	40%
NPM	18%	20%	20%	18.5%	18.7%