Consider the Following Income Statement Data for Barolo Inc -Based on Common-Size Analysis,which of the Following Statements Is Correct

question 45

Multiple Choice

Consider the following income statement data for Barolo Inc.:
$$\begin{array}{l}\begin{array} { l l r } &2020&2019\\\text {Sales revenue }&\$ 97,300&\$86,200\\\text {Less: Cost of goods sold }&45,600&53,400\\\text {Gross profit }&51,700&32,800\\\text {Less: Selling and administration costs }&22,500&18,300\\\text {Net Income }&\$29,200&\$14,500\\\end{array}\end{array}$$
-Based on common-size analysis,which of the following statements is correct?

• A)The increase in sales revenue in 2020 was caused by higher selling and administrative expenses.
• B)The company's cost to sales ratio improved in 2020.
• C)The increase in gross profit in 2020 was due to increased sales.
• D)Net income as a percent of sales declined in 2020.

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