1. Financial Analysis and Forecasting – Sweet Dreams Incorporated
... credit policy, SDI's inventories and receivables piled up to a level where company was compelled to take additional long-term and short-term loans that were still not sufficient to cover mentioned above growing assets expansion, but drastically decreased company's net income. Another trend in the common size income statements was growing COGS. There are two reasons that could impact growing COGS ... in 1994-1995: first, relaxed credit policy; and second, increased inventory. Moreover, in parallel with increased COGS, operating expenses negatively impacted EBIT decreasing it to 2.79, in ...
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