| (in millions) | 2016 | 2015 | 2014 |
| Sales | $700 | 650 | 550 |
| Cost of goods sold | 350 | 325 | 275 |
| Gross profit | 350 | 325 | 275 |
| Operating expense | 100 | 100 | 100 |
| Advertising and marketing | 50 | 75 | 75 |
| Operating profit | 200 | 150 | 100 |
| Interest expense | 70 | 50 | 30 |
| Earnings before tax | 130 | 100 | 70 |
| Tax expense (50%) | 65 | 50 | 35 |
| Net income | 65 | 50 | 35 |
Write a one paragraph analysis of the corporation’s profit performance for the period. The focus is on analyzing financials data rather than simply describing the numbers and trends. The analysis should involve breaking information into parts and making comparisons, drawing conclusions, and evaluating cause and effect.
First of all we will calculate the % of each year. The calculation of the % of Other items with the sales are as follow
| (in millions) | 2016 | 2016% | 2015 | 2015% | 2014 | 2014% |
| Sales | $700 | 100 | 650 | 100 | 550 | 100 |
| Cost of goods sold | 350 | 50 | 325 | 50 | 275 | 50 |
| Gross profit | 350 | 50 | 325 | 50 | 275 | 50 |
| Operating expense | 100 | 14.28571 | 100 | 15.3846 | 100 | 18.182 |
| Advertising and marketing | 50 | 7.142857 | 75 | 11.5385 | 75 | 13.636 |
| Operating profit | 200 | 28.57143 | 150 | 23.0769 | 100 | 18.182 |
| Interest expense | 70 | 10 | 50 | 7.69231 | 30 | 5.4545 |
| Earnings before tax | 130 | 18.57143 | 100 | 15.3846 | 70 | 12.727 |
| Tax expense (50%) | 65 | 9.285714 | 50 | 7.69231 | 35 | 6.3636 |
| Net income | 65 | 9.285714 | 50 | 7.69231 | 35 | 6.3636 |
Following comparision percetage of of the 2015 and 2016 to the 2014 year
From the above table we could see that there is 18 % in sale in the year 2015 and 27% in sale in the year 2016.Cost of Goods Remain same as the level in the 2014 so there is no change in cost of goods sale. On the same way gross profit margin remain costant
Operatin Expenses reamin constant over a period of three year i.i 100 . But if we compare it to the percetage of sale it is reducing every year .In the year 2014 it is 18.18% while in the year 2015 it is 15% and in the year 2016 it is 14.28%
Advertise expanses reduce in the year 2016 comparative to the year 2015 and 2014 .Though there is reduction in the advertise coat
Operating profit margin increases gradually over the perion of 2015 and the year 2016 comparative to the year 2014
Interest expenses increases over the year 2015 and 2016. It was 5 % in the year 2014 while it is 7 % in the year 2015 and 10% in the year 2016
EBT increases gradually over the perion of 2015 and the year 2016 comparative to the year 2014.It was 12.72 % in the year 2014 while it is 15.38% in the year 2015 and 18.57% in the year 2016
on the same way Net Income
increases gradually over the perion of 2015 and the year 2016 comparative to the year 2014.It was 6.36 % in the year 2014 while it is 7.9% in the year 2015 and 9.28% in the year 2016
In conclusion we could say that performance of the year 2016 is better than the performance of the year 2015 and 2014 because sales increases in the year 2016 and 2015 but expenses is not increased to that extent i.e. increase in sales. So ultimatle increase in EBT and Net income margin
