Shaw's accounting year ends on 30 April. The following information is supplied for 2011, 2012 and 2013. | | 2011 | 2012 | 2013 |---|---|---|---| | | $ | $ | $ Revenue (Sales) | 150000 | 225 000 | 300000 Gross profit | 37500 | 56250 | 75000 Profit for year (Net profit) | 18750 | 23 400 | 27990 Capital | 150000 | 195000 | 240000 Gross profit margin | 25% | 25% | ? Net profit margin | 12.50% | 10.40% | ? Percentage of expenses to sales | 12.50% | 14.60% | 15.67% Return on capital employed | 12.5% | 12% | ?

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2013). The mark or mark type is shown in brackets.

1. [1] (a) Gross profit margin = 25% (1) ($75 000 ÷ $300 000 × 100)
2. [1] (a) Net profit margin = 9.33% (1) ($27 990 ÷ 300 000 × 100)
3. [1] (a) Return on capital employed = 11.66% (1) ($27 990 ÷ 240 000 × 100)
4. [1] (b) Three-year trend has fallen/deteriorated (1)
5. [1] (b) Gross profit margin has remained constant (1)
6. [1] (b) Gross profit has increased (1)
7. [1] (b) Sales had increased (1)
8. [1] (b) Net profit has increased (1)
9. [1] (b) Net profit margin has fallen (1) despite an increase in sales (1)
10. [1] (b) Percentage of expenses to sales has increased (1)
11. [1] (b) Expenses have increased at a faster rate than sales (1)
12. [1] (b) Return on capital employed has decreased (1) of less than 1% / by a small amount (1)