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Below Is Some Information Taken from the Income Statements of RPG

Question 123

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Below is some information taken from the income statements of RPG and RPM Co.
RPG Co. 201520142013 Net Sales $152,000146,000$140,000 Cost of Goods Sold 115,000110,000107,000 GrossProfit $37,000$36,000$33,000A) RPM Co. Net Sales $84,000$83,000$80,000 Cost of GoodsSold 70,00069,00068,000 GroseProfit $14.000$14.000$12.000\begin{array}{lrlr}\underline { \text {RPG Co. } }&\underline { 2015 }&\underline { 2014 }&\underline { 2013 }\\\text { Net Sales } &\$ 152,000 & {146,000} & \$ 140,000 \\\text { Cost of Goods Sold } &115,000 & 110,000 & 107,000 \\\text { GrossProfit } &\underline { \$ 37,000} &\underline { \$ 36,000}& \underline { \$ 33,000} \\\\A)\underline { \text { RPM Co.} }\\\text { Net Sales } &\$ 84,000 & \$ 83,000 & \$ 80,000 \\\text { Cost of GoodsSold } &70,000 & 69,000 & 68,000\\\text { GroseProfit } &\underline { \$ 14.000 }&\underline { \$ 14.000 }&\underline { \$ 12.000 }\end{array} A) Using time series (or trend) analyss, comment on the trend of RPG's cost of goods sold and gross profit.
B) Using cross sectional analysis, compare RPG's gross profit to that of RPM.

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A) RPG's cost of goods sold increased by...

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