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2Ws Inc. Comparative Income statement December 31, 20X8 and 20X7 2008 20X7 2176 250 2 098 625 1.561.875 1.501.000 614 375 597 625 51.000 46 875 61.200 60.000 112 200 106 875 502 175 490 750 135 875 132 906 25.000 341 300 153.585 167 715 Sales Acquisition cost of goods sold Gross margin Freight Warehousing Total other cost of sales Net margin Seling expenses Administration expenses Pre-tax income Income tax expense Net income 25.000 332 844 149.700 183 064 Sincrease (decrease) 77 625 60.875 16750 4125 1.200 5325 11425 2 909 0 8456 3.805 4651 % increase (decrease) 3.7% 4.1% 2.8% 8.8% 2.0% 5.0% 2.3% 2.2% 0.0% 2.5% 2.5% 2.5% 100 Fie Edit View Insert Format Tools Extensions Hell 647 100% Normal text Times New Analyze the data by answering the following establish what the information tells you identify the question(s) this raises decide what needs to be investigated or what action needs to be taken to answer these questions Use the table attached to share your findings. Information Questions Action Example. The acquisition cost of goods has increased by a higher rate than sales revenue (4.1%), resulting in gross margin growth below sales growth (2.8%) Why did acquisition costs increase disproportionately to sales revenue? Investigate why this occurred; for example, wholesale price increases were greater than sales price increases • Investigate alternative suppliers wholesale prices (if appropriate) • Investigate purchasing procedures (if appropriate)
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