“Fourth quarter U.S. online sales grew 26.2 percent as compared to the same period in the...

“Fourth quarter U.S. online sales grew 26.2 percent as compared to the same period in the previous year. Full year results show U.S. online sales year-over-year growth was 32.2%. Overall, full year total company sales, including both online and store sales, increased 9.5% year-over-year.”

Which of the following would NOT explain what this is about?

	a.	The data in the news release was computed using horizontal analysis based in the income statement.
	b.	Total sales reported indicate year-over-year growth.
	c.	Revenues generated by online sales increased for both the most recent quarter and full year as compared to the same periods one year ago.
	d.	Online sales grew at a greater rate than store sales.
	e.	Profits for the full year just ended increased 9.5% over the prior year.

Expert Solution

As per the analysis there are many pitfall in the problem like data for both type of sale like online sale and store sale is not proper given that is data showing fourth quarter US online sale increase by 26.2 % , but store sale percentage is missing so out of the five, Option (c) would not explain regarding sale for both the periods.AS ;

(c) Only online US sale for fourth quarter is given but previous year fourth quarter data is missing. Similarly, online full year sale growth percentage is given but previous year data is missing. Also, full year store sale data is missing underwhich it is difficult for comparrison purpose. Although full year total sale both online and store sale is given.

And for the rest options; (explanation)-

(a) Data in news release was computed using horizontal analysis based in income statement where for comparison purpose similar period data regarding online sale and store sale is missing but for the income statement net result is shown which seems to be good.

(b) As per analysis full year sale year-over-year increased by 9.5% . Here, again seggaration is missing but clear indicate that company sales increases for both online and store sale showing positive response year by year to the company.

(d) It seems true that online US sale is much more than store sale. Year- over-year full year online sale increased by 32.2% while full year total sale is increased by 9.5% which shows that online market is wider in US compared to store market.

(e) As per anlysis, only consolidated figure is given which shows increased of both online and store sale by 9.5% year-over-year.

ekkarill92 answered 2 years ago

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