ACCT205 Week 5 Discussions and Responses 1.docx

The decreases in net income are caused by increases

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decreased for those same years. The decreases in net income are caused by increases in cost, such as fuel, total operating expenses, operating income, sales, administrative expenses, and interest expenses which trended downward each year. Wainwright, S. K. (Ed.). (2012). Principles of Accounting: Volume I [Electronic version]. Retrieved from Discussion 2 Response 1 Let at least two of your peers know what you changes you would recommend to improve the net margin of the company.
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Erin Wrote According to these percentages, and the amount of net income, you can see that the trend is declining. You can see from the spreadsheet that even though revenue is increasing, so are the expenses, interest, operating expenses, and operating income. You can see that the maintenance repairs are going down however. But it still doesn’t make up for the other expenses. In order to really understand why the company is declining, you’ll need a more in-depth analysis. My Response Hi Erin, Good Post! I enjoyed reading your post. You explained and detailed the increasing expenses also mentioning the decline in maintenance repairs as well. I also think that there needs to be a more in-depth analysis, to understand exactly what is causing the decline in net income decreases. The net profit margin allows to see profitability on the sales of a company, by comparing and utilizing trend analyses based on percentages and calculation to reach the net – profit margin. “The net-profit-margin ratio reflects the final residual amount.” Wainwright, (2012). My recommendation would be to find a way to decrease in total operating expenses and salaries, to improve the net margin of the company.
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  • Fall '10
  • RobertCarr
  • Accounting, Revenue, Net Income, Generally Accepted Accounting Principles, Wainwright

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