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You are examining the common-size income statement...

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You are examining the common-size income statements for a company for the past five years and have noticed that the cost of goods as a percentage of sales has been increasing steadily. At the same time, EBIT as a percentage of sales has been decreasing. What might account for the trends in these ratios? what actions might managers take to improve these ratios?

 

Paper#3986 | Written in 18-Jul-2015

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