I\'m taking classes in French that\'s why this is so convoluted but I\'m really
ID: 2334382 • Letter: I
Question
I'm taking classes in French that's why this is so convoluted but I'm really not sure what this is asking me and I would appreciate any help!
Income statement analysis Income statement of the Company : "The French Cements" in Ke 2015 2016 Sales (production sold) Finished goods inventory Operating Subsidy Other operating income 4 144 154 4624 113 75 468 161 10049 Total Operating revenues 4185 563 4709 791 2 250 494-2542 514 1 015 419 1 105 092 122 962149 706 -297 534 19 806 9 820 Total Operating expenses 3 676 678 124 472 585 319 32 403 510 8 496 Raw materials and supplies purchases Salaries and personnel related costs Operating taxes Allowance for depreciation of fixed assets Allowance for depreciation of currentassets Other operating expenses 266 524 9 675 11 604 508 885 Operating income 8410 248 951244 200 454 358 163 235 694 6 098 Financial interests received Financial interests paid Exchange gains Exchange losses 348 658 Financial income -243 Exceptional revenues/gains Exceptional expenses Other exceptional items 14 723 4 854 57 441 47 572 28761 35 646 -34 055 -40 940 Exceptional income 4 899 Due employees profit Income tax 3 700 83 432-107 075 197 910 NET EARNING 129 819 Costs are preceded by a minus sign (-) Please calculate 1- The successive levels of margins for year 2015 and year 2016, in French presentation 2- For each year, the % of each margin in comparison with total production 3- What are the critical costs? -7 4- The growth rate of each margin between 2015 and 2016 5- What is you analysis?Explanation / Answer
SUCCESSIVE LEVEL OF MARGINS 1 2015 2016 A Sales 4,144,154 4,624,113 B Operating Income 508,885 585,319 C Net Earnings 129,819 197,910 D=B/A Operating Profit Margin 0.122795871 0.12657974 Operating Profit Margin(%) 12.28% 12.66% E=C/A Net Profit Margin 0.031325815 0.04279956 Net Profit Margin(%) 3.13% 4.28% 2 2015 2016 A Production Sold 4,144,154 4,624,113 B Beginning Finished goods ? 32,403 C Ending Finished goods inventory 32,403 75,468 D=A+C-B Total Production during the year 4,667,178 (totalproductionfor 2015 cannot be calculated,because information onbegining inventory isnot available E Operating Income 508,885 585,319 F Net Earnings 129,819 197,910 G=E/D Operating Margin on total production 0.12541176 H Operating Margin(%) 12.54% I=F/D Net Margin on total production 0.04240464 J Net Margin(%) 4.24% 3 2015 2016 A Sales 4,144,154 4,624,113 CRITICAL COSTS: B Raw materials and supplies purchase 2250494 2542514 C Salaries and Personnel related costs 1015419 1105092 D=B/A Percentage of Raw material & supplies cost of Sales 54% 55% E=C/A Percentage of Salaries and Personnel cost of Sales 25% 24% 4 GROWTH RATE OF MARGINS A B g=(B/A)-1 2015 2016 Margin Growth Rate Operating Profit Margin(%) 12.28% 12.66% 3.08% Net Profit Margin(%) 3.13% 4.28% 36.63% 5 Operating Margin is almost same in both the years Net profit margin has increased significantly as a percentage of sales