One Manager (Adam)says That the Income Statement Should Be Strong

Multiple Choice

One manager (Adam) says that the income statement should be strong this year because the company has achieved a high level of sales revenue.Another manager (Eve) says that even with strong sales revenue,the income statement might not look particularly good.What is Adam assuming?

A) That high revenues equate to a healthy income statement
B) That various factors besides sales revenue must be taken into account to calculate the income statement
C) That sales revenue next year will likely be as good as this year's
D) That operating expenses have been relatively high this year
E) That gross profit is much lower than gross sales