A-LevelAccountingAnalysis and communication of accounting information9706/12 · May/June 2012 · Q191 Mark
The table gives information about a company. year 1 $ year 2 $ revenue 150 000 200 000 cost of sales 105 000 130 000 45 000 70 000 administration and distribution expenses 27 000 47 500 profit from operations 18 000 22 500 non-current assets 120 000 110 000 net current assets 30 000 40 000 non-current liabilities (50 000) (10 000) What happened to gross profit margin and return on capital employed in year 2? gross profit margin return on capital employed decreased decreased increased decreased decreased increased increased increased
Adecreased decreased
Bincreased decreased
Cdecreased increased
Dincreased increased
✓ Correct answer
D: increased increased
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