Toy Shop Inc Requirements:
1

Toy Shop Inc.has provided the following income statements:
$\begin{array}{lrrr}& 2011 &2010& 2009 \\\text { Net revenues } & \$ 3,787.2 & \$ 4,232.2 & \$ 3,304.5 \\\text { Cost of goods sold } & 1,674.0 & \$ 1,698.2 & 1,366.1 \\\text { Gross profit } & 2,113.2 & 2,534.0 & 1,938.4 \\\text { Operating expenses } & 2,217.5 & 2,206.5 & 1,613.5 \\\text { Income (loss) from operations } & (104.3) & 327.5 & 324.9 \\\text { Nonoperating income (loss) } & (121.7) & (53.7) & (21.4) \\\text { Income (loss) before taxes } & (226.0) & 273.8 & 303.5 \\\text { Income tax expense } & 81.4 & (84.9) & (97.1) \\\text { Net income (loss) } & (144.6) & 188.9 & 206.4\end{array}$ Requirements:
1.Compute net profit margin for each year.
2.Discuss some of the events which could have caused the changes to the net profit margin based on the income statement information above.