After analyzing Coyote Canyon Outfitter’s Income statement you notice the sales are 20% higher than last year. You also notice the net income is 15% higher. Also, according to your calculations the gross profit has declined from 60% to 50% and Research and Development has increased by 15%. Please comment on these observations. Be specific.

• Is an increase in sales always good?
• Why might sales increase 20% but net income increase only 15%?
• What might cause the gross profit percent to decline?
• How would the increase in R&D affect the net income?

Please make your initial post by midweek, and respond to at least one other student’s post by the end of the week.

Please check the Course Calendar for specific due dates.