The Ranger Corporation Data for the Current Year and Prior

question 184

Multiple Choice

The Ranger Corporation data for the current year and prior year is as follows: What would a horizontal analysis report with respect to net sales revenue show?

• A)Cost of goods sold is 80.70% of net sales revenue
• B)A sales return of 9.14%
• C)An increase of 19.20% in net sales revenue
• D)Accounts receivable turnover of 8.08 times

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Definitions:

Income Statement

An Income Statement is a financial statement that shows a company's revenues and expenses over a specific period, culminating in net profit or loss.

Delivery Service Revenue

Income earned from providing delivery services to customers, part of operating revenue for businesses in the delivery industry.

Packing Supplies

Materials used for wrapping or protecting goods during shipment or storage, recognized as part of inventory costs in business accounting.

Journal Entries

The recordation of financial transactions in a company’s accounting system that involves at least one debit and one credit entry.