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From the following information of Narsimham Company Ltd., prepare a Comparative Income Statement for the years 2004-2005

Particulars20112012
Gross sales
(-) Return
7,25,000
  (25,000)
8,15,000
  (15,000)
Net sales
cost of goods sold
7,00,000
5,95,000
8,00,000
6,15,000
Gross profit other expenses1,05,0001,85,000
selling and distribution expenses
administration expense
23,000
12,700
24,000
12,500
Total expenses35,70036,500
Operating income
other income
69,300
 1,200
 
1,48,500
     8,050
 


Non-operating expenses
70,500
  1,750
1,56,550
     1,940
Net profit68,7501,54,610

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Interpretation

(i) The Net Profit of the company increased.

(ii) Simultaneously the company has tried to reduce its costs to improve its profit margin.

(iii) Profitability of the company has improved over the year.

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