The Following Is Summary of Information Presented on the Financial

question 31

Multiple Choice

The following is summary of information presented on the financial statements of a company on December 31, 2015. $$\begin{array} { | l | r | r | } \hline \text { Nccount } & { \mathbf { 2 0 1 5 } } & { \mathbf { 2 0 1 4 } } \\\hline \text { Net Sales Revenue } & \$ 600,000 & \$ 500,000 \\\hline \text { Cost of Goods Sold } & \underline { 450,000 } & \underline { 400,000 } \\\hline \text { Gross Profit } & \$ 150,000 & \$ 100,000 \\\hline \text { Selling Expenses } & \underline { 50,000 } & \underline { 50,000 } \\\hline \text { Net income before income taxexpense } & \$ 100,000 & \$ 50,000 \\\hline \text { Income taxexpense } & \underline { 35,000 } & \underline { 18,000 } \\\hline \text { Net Income } & \$ 65,000 & \$ 32,000 \\\hline\end{array}$$ What would a horizontal analysis report show with respect to net sales revenue?

• A) a 20% increase in net sales revenue
• B) a 120% decrease in net sales revenue
• C) a decrease of $ 50,000 in net sales revenue
• D) an increase of $50,000 in net sales revenue

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Definitions:

Eye Contact

The act of looking directly into another individual's eyes, which is an important element of non-verbal communication and can convey various messages and emotions.

Chronic Low Self-Esteem

A long-term negative perception of oneself, marked by persistent feelings of inadequacy and lack of self-worth.

Alcohol Abuse

The excessive or inappropriate consumption of alcohol leading to physical or mental health issues.

Social Isolation

The condition in which an individual lacks interaction or contact with other people over a significant period.