00:01
In its year -end financial statements, pillar incorporated reported the following in millions.
00:07
Year 1 sales $47 ,011, cost $33 ,546.
00:15
Year 2 sales $38 ,537, cost $28 ,309.
00:25
As a percentage of sales, did pillar's gross profit increase or decrease during the year? so first thing that we need to calculate is going to be the profit.
00:40
So the gross profit is calculated as sales minus the cost of goods sold.
00:46
For year 1, the gross profit is going to be $47 ,011 minus $33 ,546 equals $13 ,465 ,000.
01:12
And this is the gross profit from year 1.
01:18
For year 2, the gross profit is going to be the $38 ,537 minus $28 ,309, which brings the gross profit to $10 ,228 ,000...