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in doing a vertical analysis of an income statement, you notice that the cost of goods sold increased from 50% of sales in year 1

in doing a vertical analysis of an income statement, you notice that the cost of goods sold increased from 50% of sales in year 1 to 60% of sales in year 2. A possible explanation is

a. inventory cost rose faster than sales prices

b. inventory is being stolen

c. the accounting records are not accurate

d. all of the above

e. none of the above

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