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you have been analyzing your company's performance over the past few years and decided to conduct a horizontal analysis. your results are above. 1. some of the results are causing you concern. what are these and why do they concern you? 2. what caused your net income to increase so much more than the increase in net sales?

Sagot :

ogorwyne

1. The issue that is causing you concern in the results would be the number of market sale and the uncertain demand that is in the market.

2. The cause that has led to the increase that is in the net sales is the rise in gross profit.

What is the issue of concern here?

The main outcomes that raised concerns were the number of sales, which increased by 13.4% as a result of innovation or market uncertainty in demand. We need to identify this issue because as inventory levels have increased as a result of the excess demand for the product, which is only a result of uncertainty, leading to poor working capital management.

COGS—since COGS haven't climbed as much as revenues, the corporation has allegedly made some capital investments to lower costs and boost production.

SG&A expenses have exceeded all growth milestones and have sharply increased, which is worrying.

2. The reason why the net sales has risen is because of income growth, compensates for the fact that the biggest expense, COGS, has not increased as much in tandem with sales. And it is quite evident from looking at interest expenses that the corporation has taken a loan, which could

Read more on net sales here: https://brainly.com/question/4177260

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