Analyzing the comparative income statements, the following conclusions are drawn:-
Sales went up 4.93% from last year.-
Cost of Goods Sold rose by a smaller percentage than sales, 3.97%-
Net income increased 11.45% from 1992 to 1993.-
Gross margin ratio for 1992 was 23.50% and for 1993, 24.21%.; a positive increase of 0.71%.-
Other expenses saw a spike of 6.43%. 56% of the increase belongs to Interest.Increase in interest expense is tied to increase in current and long-term debt in theBalance Sheet.-
Conclusion:
Enager had a improvement of net income year to year due to an increasein sales, cost cutting measures and contained expenses.Analyzing the comparative balance sheet statements, the following conclusions aredrawn: