Income Statement Issues. Questions What can be done to improve profits?

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Presentation transcript:

Income Statement Issues

Questions What can be done to improve profits?

Profitability

Income Statement

Implications/Conclusions A slight increase in Net Sales can result in a huge increase in Operating Profits Gross Profit Margin is way below industry standards

Recommendations Increase Sales Increase Gross Profit Margins Reduce Cost of Goods Sold Kennon, J. (2009). Calculating gross profit margin. In About.com. Retrieved August 7, 2009, from