Question
. While performing analytical procedures at the planning stage of the audit, you found the followings: (1) Gross profit margin has been decreased from previous
.
While performing analytical procedures at the planning stage of the audit, you found the followings:
(1) Gross profit margin has been decreased from previous year.
(ii) Current ratio has been increased from previous year.
Leverage has been increased
(iv) Net asset turnover has been decreased
(v) Inventory holding period has been increased
Requirement: Explain the possible reasons for the above changes?
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Financial and Managerial Accounting
Authors: Horngren, Harrison, Oliver
3rd Edition
978-0132497992, 132913771, 132497972, 132497999, 9780132913775, 978-0132497978
