The Nichols Corporation Data for the Current Year: What

question 22

Multiple Choice

The Nichols Corporation data for the current year: What would a horizontal analysis report with respect to net income before income tax expense and net income?

• A)Both net income before tax expense and net income were 11.26% of net sales revenue.
• B)Both net income before income tax expense and net income increased by $128,400.
• C)The current ratio is 1:06.
• D)There was an increase in both net income before income tax expense and net income of 14.00%.

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Definitions:

Return Component

An element of a system or device that is designated to be sent back to the manufacturer or repair center for refurbishment, repair, or recycling.

SCM

Supply Chain Management (SCM) is the oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer.

Inventory

Inventory refers to the total amount of goods and materials held in stock by a business, warehouse, or storage facility.

Goods And Services

Goods and services are the products and activities that satisfy human wants; goods are physical items, while services are non-tangible activities or benefits.