( 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)