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Convert the following Income Statement into Common Size Statement and interpret the changes in 2011 in the light of the conditions in 2010.

particularsRs.2010Rs.2011
Gross sales
(-) Return
30,600
     600
36,720
     (700)
Net sales
(-) cost of goods sold
 30,000
(18,200)
 36,020
(20,250)
gross profit (-) opetation expense11,80015,770
Administration expenses
sales expenses
(3,000)
(6,000)
 (3,400)
(6,600)
Total expenses9,00010,000
Income from operation
(+) non - operation income
2,800
   300
5,770
   400
Total income
(-) non -operation expenses
3,100
  (400)
6,170
   (600)
Net profit2,7005,570

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Comment: Company has reduced its cost and expenses which has resulted in increase in income from operations and net profit.

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