ACCT205 Week 5 Discussions and Responses 1.docx

Wainwright s k ed 2012 principles of accounting

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total operating expenses and salaries, to improve the net margin of the company. Wainwright, S. K. (Ed.). (2012). Principles of Accounting: Volume I [Electronic version]. Retrieved from Discussion 2 Response 2 Saul Wrote The net income has decrease since 2010, but they were able to maintain themselves at 2000 through 20112. The biggest change I see is that they are now spending o a lot more on labor, this may be due to the company expanding and needing more man power. My Response Hi Saul, Good eye. I also see an increase in labor, and the company expanding, requiring more man power could very well be the reason. Looking for a more economic but efficient way to decrease labor, and operating expenses would be my suggestion to improve the net profit of the business. Watching the gross-profit-margin ratio and the net-profit-margin ratio analysis results will indicate if a business is profiting or losing. “Investors are especially interested in knowing that businesses that they invest in are capable of producing an eventual profit.” Wainwright, (2012). Wainwright, S. K. (Ed.). (2012). Principles of Accounting: Volume I [Electronic version]. Retrieved from
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Looking at the amount of income before looking at the financing costs that the business generates, would be using the ROA ratio, that with taking the net income into consideration would and would “
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  • Fall '10
  • RobertCarr
  • Accounting, Revenue, Net Income, Generally Accepted Accounting Principles, Wainwright

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