The document discusses calculating gross profit percentage from financial statements. Gross profit percentage is calculated as gross profit divided by sales multiplied by 100. It provides examples of calculating gross profit percentage for the Gaelic Athletic Association (GAA) and Corrigan's Fuel Service from their 2011 and 2012 financial statements. While the GAA's gross profit percentage increased from 40% to 50% from 2011 to 2012, Corrigan's declined from 44% to 33% over the same period.

1. GROSS PROFIT PERCENTAGE
Gross profit percentage = Gross profit x 100
Sales 1

2. SAMPLE QUESTIONS
• The following information relates to the accounts of
the Gaelic Athletic Association:
• 2012 sales = €950,000 Gross profit = €475,000
• 2011 sales = €900,000 Gross profit = €360,000
• Calculate the gross profit margin for 2011 and 2012

3. GAA ANSWER - 2011
• Gross profit percentage = Gross profit x 100
Sales 1
• 2011 - 360,000 x 100
900,000 1
= 40%

4. GAA ANSWER - 2012
• Gross profit percentage = Gross profit x 100
Sales 1
• 2012 - 475,000 x 100
950,000 1
= 50%

5. REASONS FOR INCREASE IN GROSS PROFIT
• Why has the GAA’s Gross Profit Percentage increased from
2011 to 2012?
• Higher number of tickets sold
• International Rules series played in Ireland
• Higher number of matches replayed – bigger crowds
• No maintenance needed on assets eg. Croke Park

6. SAMPLE QUESTION
• The following information relates to the accounts of
Corrigan’s Fuel Service:
• 2012 sales = €375,000 Gross profit = €125,000
• 2011 sales = €295,000 Gross profit = €130,000
• Calculate the gross profit margin for 2011 and 2012

7. CORRIGANS FUEL SERVICE - 2011
• Gross profit percentage = Gross profit x 100
Sales 1
• 2011 - 130,000 x 100
295,000 1
= 44%

8. CORRIGANS FUEL SERVICE - 2012
• Gross profit percentage = Gross profit x 100
Sales 1
• 2012 - 125,000 x 100
375,000 1
= 33%

9. REASONS FOR DECLINE IN GROSS PROFIT
• Increase in the sale of petrol – less profitable for the
business compared to home heating oil
• Losses because of stolen goods
• Reduction in selling prices because of new competition

10. REMEMBER!!
• Gross profit percentage = Gross profit x 100
Sales 1