Worldwide Widgets

	2018	2017	2016
Net revenues	100.0%	100.0%	100.0%
COGS	82.1%	81.7%	81.8%
Gross income	17.9%	18.3%	18.2%
Selling, general and administrative (SG&A) expenses	9.0%	8.7%	8.6%
Research, development and engineering expenses	0.5%	0.9%	1.1%
Operating income	8.4%	8.6%	8.6%
Other income	0.4%	0.4%	0.4%
Income before income tax	8.8%	9.0%	9.0%
Income tax provision	2.6%	2.8%	2.6%
Net income	6.2%	6.2%	6.4%
Earnings per common share (diluted)	$1.46	$1.18	$1.01

Note: Worldwide Widgets bought back a portion of its outstanding common stock in 2017 and 2018.

The statement above has been created from the financial results released last year by Worldwide Widgets. Use this information to answer questions 6 and 7.

What is the name of the statement above? When might it be advisable to use such a statement

Question 7

As the statement above indicates, the companys COGS and SG&A are increasing. Yet, its Earning per Share (EPS) is increasing significantly. How might this be possible? What problems do you anticipate in the future for this company? Justify your answers.

please answer both quesstion because it relat to it