Research Project Essay Example | Topics and Well Written Essays - 500 words - 1

Research Project - Essay Example Hence, Google Inc. Company is on average. Gross profit margin shows the percentage for availability of revenue to cover cost of operating and expenditures. The gross profit margin has increased from 43.4% to 58.9% for years 2013 and 2014 respectively. Hence, there is improved profit margin. It analyses financial statements that are operated on a single period. On income statements, correlation is represented by percentage of each account that is separate to net sales. Express accounts apart from net sales as a percentage of net sales. Net income is calculated as a percentage of net sales that has not been used on expenses. It makes comparison of data for two periods. Users of financial statements review changes in the data that much like an indicator. Analysts determine for growth in assets, net income, revenue, in addition to decreasing in liabilities and expenses. In determining changes in absolute dollar need users to deduct base figure from the current number. To determine percentage need users to divide by the value now and multiply by 100. Helps to review financial statements of three or more years. The earliest years in the data represent the base year, and dollars can be used for consecutive periods. For comparability, analysts use percentages. Improved financial statements include decreased expenses and an increase in