The Following Is a Summary of Information Presented on the Financial

question 51

Essay

The following is a summary of information presented on the financial statements of The Cake Company on December 31, 2014.
What would horizontal analysis report with respect to net income before income tax expense and net income?
A)That both net income before income tax expense and net income are 45.45% of net sales revenue
B)A $25,000 increase in both net income before income tax expense and net income
C)A 45.45% increase in both net income before income tax expense and net income
D)A 145% increase in both net income before income tax expense and net income

• A)That both net income before income tax expense and net income are 45.45% of net sales revenue
• B)A $25,000 increase in both net income before income tax expense and net income
• C)A 45.45% increase in both net income before income tax expense and net income
• D)A 145% increase in both net income before income tax expense and net income

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Definitions:

Control Group

A group in an experiment or study that does not receive the experimental treatment and is used as a benchmark to measure how the other tested groups perform.

Clinically Significant

Describing a result, finding, or change that is large enough to matter clinically, indicating meaningful implications for a patient's diagnosis, treatment, or prognosis.

Anxiety Disorder

Anxiety Disorder is a mental health condition characterized by excessive fear or worry that affects one's daily activities.

Statistically Significant

A mathematical indication that a result is not likely to have occurred by chance, suggesting a true difference or effect exists.