Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. you are analyzing the past 5 years of common-size

You are analyzing the past 5 years of common-size income statements (all items stated as...

50.1K

Verified Solution

Question

Accounting

You are analyzing the past 5 years of common-size income statements (all items stated as a % of sales) for a company and notice the following trends: cost of goods sold expense as a percentage of revenue has decreased; selling, general & administrative expense as a percent of revenue has increased; interest expense as a percent of revenue has increased. Which of the following recommendations (to increase profitability) are consistent with you findings?
I. Make better borrowing decisions in order to reverse the trend in higher borrowing costs.
II. Make better purchasing decisions to reverse the trend of higher materials costs.
III. Streamline the human resources department to reverse the trend of higher administrative costs.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students