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    Fma Assignment 2

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    Dani Azmi Awoke
    The document is an assignment for a Masters in Business Administration course. It provides two questions for analysis: [1] A company's net income decreased despite an increase in sales, due to increased costs. Possible actions to address this include cost control measures. [2] A company spends 85% of expenses on salaries, affecting profitability. Actions could include rightsizing staff or reducing salary costs.

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    Fma Assignment 2

    Uploaded by

    Dani Azmi Awoke
    174 views2 pages
    The document is an assignment for a Masters in Business Administration course. It provides two questions for analysis: [1] A company's net income decreased despite an increase in sales, due to increased costs. Possible actions to address this include cost control measures. [2] A company spends 85% of expenses on salaries, affecting profitability. Actions could include rightsizing staff or reducing salary costs.

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    Financial and Managerial Accounting

    Original Title

    FMA ASSIGNMENT 2

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    The document is an assignment for a Masters in Business Administration course. It provides two questions for analysis: [1] A company's net income decreased despite an increase in sales, due to increased costs. Possible actions to address this include cost control measures. [2] A company spends 85% of expenses on salaries, affecting profitability. Actions could include rightsizing staff or reducing salary costs.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    174 views2 pages

    Fma Assignment 2

    Uploaded by

    Dani Azmi Awoke
    The document is an assignment for a Masters in Business Administration course. It provides two questions for analysis: [1] A company's net income decreased despite an increase in sales, due to increased costs. Possible actions to address this include cost control measures. [2] A company spends 85% of expenses on salaries, affecting profitability. Actions could include rightsizing staff or reducing salary costs.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    YARDSTICK

    INTERNATIONAL
    COLLEGE

    MASTERS OF BUSINESS ADMINISTRATION (2013)

    FINANCIAL AND MANAGERIAL ACCOUNTING

    COURSE MANAGER: DR. ABEBE

    ASSIGNMENT TWO

    Student Name: Daniel Awoke

    ID Number: M/1522/21
    September, 2021

    Assignment Two

    1. The management of XYZ Company provides you with comparative balance sheets of the
    years ended December 31, 2012 and 2011. Management asks you to prepare a horizontal
    analysis on the information.

    As indicated in table above sales increased by 8.3% while net income decreased by 21.9%.
    You identified that there were increases in both cost of goods sold (14.3%) and operating
    expenses (2.1%). These increased costs more than offset the increase in sales, yielding an
    overall decrease in net income. You already identified the Couse of the problem. Therefore,
    what are the possible actions should be taken to eliminate the reduction of the net income?
    2. Assume you are a manager of XY Company, while you conduct a vertical analysis it
    is identified that 85% of the company expenses are incurred for salary. This intern
    highly affected the profitability of the organization. As a manager what are the
    possible remedial actions that you suppose to take in order to mitigate this
    drawbacks?

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