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1/ Analysts use financial statements for their analysis for all of the following reasons except...

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Accounting

1/ Analysts use financial statements for their analysis for all of the following reasons except

a/ corporate performance.

b/ employee satisfaction.

c/ lending decisions.

d/ risks related to the investment.

2/ Consider the following income statement data for Barolo Inc.:

2020 2019
Sales revenue $97,300 $86,200
Less: Cost of goods sold 45,600 53,400
Gross profit 51,700 32,800
Less: Selling and administration costs 22,500 18,300
Net Income

$29,200

$14,500

Based on common-size analysis, which of the following statements is correct?

a/ The increase in sales revenue in 2020 was caused by higher selling and administrative expenses.

b/ The company's cost to sales ratio improved in 2020.

c/ The increase in gross profit in 2020 was due to increased sales.

d/ Net income as a percent of sales declined in 2020.

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