Question
Please help, thank you. 1.-Hull Company reports the following data: Year Total Operating Expenses to Net Sales 2015 17% 2016 20% 2017 27% 2017 Industry
Please help, thank you.
1.-Hull Company reports the following data:
Year | Total Operating Expenses to Net Sales |
2015 | 17% |
2016 | 20% |
2017 | 27% |
2017 Industry Average | 15% |
Based on the above data, what can be said about the Hull Company?
A.)The company is losing control of operating expenses
B.)The company is increasing sales over time
C.)The company is doing better than the industry average.
D.)The company is controlling operating expenses.
2.-Reimer Company reports the following data:
2017 | 2016 | |
Sales | 100% | 100% |
Cost of Goods Sold | 27% | 17% |
Gross Profit | 73% | 83% |
Operating Expenses | 35% | 35% |
Net Income | 38% | 48% When evaluating the results of operations, what can be said about Reimer Company? A.)Using vertical analysis, the company's profitability declined in 2017. B.)Using horizontal analysis, the company's profitability declined in 2016. C.)Using vertical analysis, the company's profitability declined in 2016. D.)Using horizontal analysis, the company's profitability declined in 2017.
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