Identify and Describe the Two Paths of Activities That Determine

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The Answer is One path is profit margin management. The information used to examine the profit margin management path comes from the retailer's income statement, also called the statement of operations. The income statement summarizes a firm's financial performance over a period of time, typically a quarter (three months) or year. The four components in the profit margin management path are net sales, cost of goods sold (COGS), gross margin, and operating profit margin. The other path is asset management. The information used to analyze a retailer's asset management path primarily comes from the retailer's balance sheet. While the income statement summarizes financial performance over a period of time (usually a year or quarter), the balance sheet summarizes a retailer's financial position at a given point in time, typically the end of its fiscal year. Assets are economic resources (e.g., inventory, buildings, computers, store fixtures) owned or controlled by a firm. There are two types of assets, current and fixed.

Identify and Describe the Two Paths of Activities That Determine

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