The Stemple Corporation Data for the Current Year: What

question 80

Multiple Choice

The Stemple 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 are 9.16% of net sales revenue.
• B)There was an increase in net income of 55.71%.
• C)Both net income before income tax expense and net income increased by $89,500.
• D)The current ratio is 1.24.

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Definitions:

Warranty Rights

Legal guarantees provided by a seller to a buyer regarding the condition and functionality of a product.

Implied Warranty of Merchantability

An unwritten and unspoken guarantee that a product is fit for the general purpose for which it is sold and meets the standard quality and performance expected for such goods.

Seller

An individual or entity that offers goods or services for sale.

Lessee

A person or entity who holds the lease of a property; a tenant.