Oglethorpe Company Reports the Following Information from the Vertical Analysis

question 30

Multiple Choice

Oglethorpe Company reports the following information from the vertical analysis of their income statement:
Net income:
4.2 % in 2014
3.9% in 2013
Which of the following statements could be logically concluded from the above data?

• A) The company made a higher gross profit in 2014 than in 2013.
• B) The company made higher net income in 2014 than in 2013.
• C) The company has improved the profit they make per dollar of sales in 2014.
• D) The company's total net income increased by 0.3% in 2014.

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Definitions:

Dehydration

A chemical reaction that involves the removal of water (H2O) from a molecule or a compound.

Cyclopentanol

A cyclic alcohol consisting of a five-membered ring with a single hydroxyl (-OH) group.

Dehydration

A chemical reaction in which water is removed from a molecule, often leading to the formation of a double bond or a new compound.

Alcohols

Organic compounds containing one or more hydroxyl (-OH) groups attached to a carbon atom.