Which of the following statements is correct? When cost of goods sold as a percentage of sales increases, the gross profit margin will increase. If the gross profit margin increases from one year to the next, then the net profit margin will also increase from one year to the next. If the gross profit margin is the same for the current and past year, then sales and cost of goods sold in dollars did not change. It is possible that when cost of goods sold in dollars increases, cost of goods sold as a percentage of sales decreases.

Cost of Goods Sold: It refers to the cost of production of the goods sold by the company. Such…

Answered: Which of the following statements is…

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter10: Forecasting Financial Statement

Section: Chapter Questions

Problem 5QE: Use the following hypothetical data for Walgreens in Years 11 and 12 to project revenues, cost of...

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Which of the following statements is correct?

	When cost of goods sold as a percentage of sales increases, the gross profit margin will increase.
	If the gross profit margin increases from one year to the next, then the net profit margin will also increase from one year to the next.
	If the gross profit margin is the same for the current and past year, then sales and cost of goods sold in dollars did not change.
	It is possible that when cost of goods sold in dollars increases, cost of goods sold as a percentage of sales decreases.

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