财务报表分析第版答案.docVIP

Exercise 1-2 (25 minutes) 2006 2005 Sales 100.0% 100.0% Cost of goods sold 66.0 52.4 Gross profit 34.0% 47.6% Operating expenses 21.0 19.4 Net income 13.0% 28.2% Analysis and Interpretation: This situation appears to be unfavorable. Both cost of goods sold and operating expenses are taking a larger percent of each sales dollar in year 2006 compared to the prior year. Also, even though sales volume increased, net income both decreased in absolute terms and declined to only 13.0% of sales as compared to 28.2% in the year before. Exercise 1-3 (25 minutes) a. Curren