( Individual Assignment )
You may use excel or word . doc format for this assignment . Please post your homework as a word . doc or excel file in the class discussion section below by the due date .
1 . Analysis of cost of goods sold problem .
1992 1993 1994
Gross Profit Margin 60 % 55 % 51 %
What is happening to cost of goods sold ? As was done in the week 2 online lecture on ratio analysis , please assume sales of 1 dollar each year as you do your analysis . This problem follows the process shown in the Week 2 Ratio Analysis online lecture section titled : " Another Income Statement Analytical Approach : Percent of Sales "
( 5 points )
2 . Overhead ( or Sales , General and Administrative Expense ) problem .
1992 1993 1994
Gross Profit Margin 40 % 39 % 41 %
Operating Margin ( NOI / Sales ) 15 % 10 % 5 %
What is happening to S , G and A ( or overhead expenses )? Please set up an illustration assuming sales of 1.00 dollar each year just as you did in problem number one .
( 5 points )