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Answer the question below and Integrate 1-2 external references to support your thoughts and correlate with real-life context. You are examining the common-size income statements
Answer the question below and Integrate 1-2 external references to support your thoughts and correlate with real-life context.
- You are examining the common-size income statements for a company for the past five years and have noticed that the cost of goods as a percentage of sales has been increasing steadily. At the same time, EBIT as a percentage of sales has been decreasing. What might account for the trends in these ratios? What actions might managers take to improve these ratios?
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
9th edition
1-119-49356-3, 1119493633, 1119493560, 978-1119493631
