The Goodberry Corporation Data for the Current Year and Prior

question 17

Multiple Choice

The Goodberry Corporation data for the current year and prior year is as follows: 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 12% of net sales revenue.
• B)Both net income before income tax expense and net income increased by $135,000.
• C)The current ratio is 1.06.
• D)There was an increase in both net income before income tax expense and net income of 25%.

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock. Preferred shareholders typically receive dividends before common shareholders and have priority in the event of a liquidation.

Dividend Per Share

It refers to the total dividends declared by a company for each share of its outstanding shares.

EPS Growth Rate

Measures the year-over-year growth in earnings per share, indicating the rate at which a company's earnings are growing.

Investor's Rate

The expected or required rate of return on an investment, influencing investment decisions and portfolio management.