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.If the following facts were known,which one would strengthen Adam's argument?

A) Total operating expenses were high this year.
B) Rent expenses were 30 percent higher than last year.
C) Compared to gross sales,the cost of goods sold was low.
D) The company is smaller than its competitors.
E) The company has valuable fixed assets.