1. Financial Analysis and Forecasting – Sweet Dreams Incorporated
... 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 1995. All of ... than industry average, 0.77 to 1.20. A reason for such a decrease was sharply increased inventories in 1994-1995. Increased level of production and stimulated sales by new credit policy did not bring expected effect in sales resulting in even more increased inventories. Being the l...
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