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Financial Statement Analysis

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Linden Industry
$ % $ %
Sales 6000 100.0 64000 100.0
COGS 3200 53.0 33650 53.0
Gross Margin 2800 47.0 30350 47.0
Expenses:
Sales & Marketing 430 7.2 3850 6.0
Engineering 225 3.8 2650 4.1
Finance & administration 650 10.8 4560 7.1
Total Expenses 1305 21.8 11060 17.2
EBIT 1495 25.2 19290 29.8
Interest expense 230 3.8 4500 7.0
EBT 1265 21.4 14790 22.8
Tax 500 8.3 5620 8.8
Net income 765 13.1 9170 14.0

Q.
What areas should management focus on to improve performance, and what kind of issues should be examined or looked for in each area?

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The Sales, COGS and Gross Margin have remained stable across the two years. However, the sales and marketing expenses and ...

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