So I'm reviewing for the AUD section of the CPA that I will be taking in about 3 months. I stumbled upon one question and I just wanted to confirm what the answer is because its kind of a long open ended prompt one:

Andy Watson, CPA, is a senior auditor on the audit of Carlson Inc. Andy is reviewing the results of analystical procedures related to inventory. For results (a), (b) and (c) select the explanation that is most likely to be consistent with the change described. Explanations may be used once, more than once or not at all.<

Here are the options:

(1) Inventory increased as of year end.

(2) Debt outstanding increased

(3) A larger percentage of sales occurred during the last month of 20X8 as compared to 20X7.

(4) Interest expense increased during 20X8 due to the acquisition of new debt

(5) The percentage tax included in the provision for income taxes for 20X8 is less than the percentage used in 20X7.

(6) Increases in costs of purchases were not completely passed onto customers through higher selling prices.

(7) Owners' equity increased due to retention of profits.

(8) Interest expense increased during 20X8.

(9) A significant amount of long term debt became current at the end of 20X8.

THEY HAVE TO BE MATCHED TO THESE SITUATIONS:

a. Inventory turnover (as measured by COGS/ ending inventory) went from 7.95 in 20X7 to 10.52 in 20X8. Which of the explanations is consistent with the change in inventory turnover?

b. Net income increased in 20X8. Which of the explanations is most consistent with the changes in net income?

The other ones I got but I'm stuck on those two. Any help would be appreciated.