The Following Is a Summary of Information Presented on the Financial

question 16

Multiple Choice

The following is a summary of information presented on the financial statements of a company on 31 December 2017. $\begin{array}{|l|l|l|}\hline\text { Account } &{2017} & 2016 \\\hline \text { Sales revenue } & \$ 603,000 & \$ 502,000 \\\hline \text { Cost of sales } & 450,000 & 403,000 \\\hline \text { Gross profit } & 153,000 & 99,000 \\\hline \text { Selling expenses } & 52,000 & 52,000 \\\hline \text { Profit before income tax } & 101,000 & 47,000 \\\hline \text { Income tax expense } & 37,000 & 24,000 \\\hline \text { Profit } & \$ 64,000 & \$ 23,000\\\hline\end{array}$ What would a horizontal analysis report show with respect to Sales revenue?

• A)a decrease of $47,000 in Sales revenue
• B)an increase of $47,000 in Sales revenue
• C)a 20.12% increase in Sales revenue
• D)a 239.04% decrease in Sales revenue

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Definitions:

BrandDynamics Model

A framework used in marketing to assess and predict consumer loyalty and brand strength over time.

Millward Brown

A global market research agency known for its expertise in brand management and advertising effectiveness measurement.

Brand Strength

The extent of brand recognition and loyalty that a brand has, influencing its market performance.

Performance

The degree to which an individual, group, or organization meets its objectives and achieves results effectively and efficiently.