58. An increase in the gross profit margin combined with a decrease in the profit margin indicates to investors that the company's: a) sales decreased during the period. b) cost of goods sold increased during the period. c) profit increased during the period. d) operating expenses increased during the period. 59. Ratios are used as tools in financial analysis: a) instead of horizontal and vertical analyses. b) because they may provide information that is not apparent from inspection of the individual components of the ratio. c) because even single ratios by themselves are quite meaningful. d) because they are prescribed by GAAP. 60. A limitation in calculating ratios in financial statement analysis is that: a) it requires comparisons. b) no one other than management would be interested in them. c) some financial statements contain many estimates. d) they seldom identify problem areas in a company