Explore BrainMass

Volkswagen: Examining Financials

In 2004, Volkswagen reported their first-quarter profits dropped 87 percent despite a rise in sales. Your job as the analyst is to identify reasons why this might happen, without taking the time to examine the financials in detail.
Propose some ideas.

Solution Preview

In large regard when I see a drop in profitability such as this, I would imagine that outside forces has had a significant impact ...

Solution Summary

This response suggests reasons as to why Volkswagen may have reported a drop in profits despite a rise in sales.