Use the Following Information to Do a Horizontal Analysis of Magic

question 83

Multiple Choice

Use the following information to do a horizontal analysis of Magic Corporation's income statement for the current year and prior year: $$\begin{array} { | l | l | l | l | l | } \hline \text { Account } & \text { Current year } & \text { Priar year } & \text { Dollar Change } & \text { \% Change } \\\hline \text { Cost af good sold } & \$ 375,000 & \$ 300,000 & & \\\hline \text { Selling/general exp } & \$ 60,000 & \$ 40,000 & & \\\hline \text { Gross prafit } & \$ 102,600 & \$ 76,000 & & \\\hline \text { Net incarne } & \$ 17,600 & \$ 22,000 & & \\\hline\end{array}$$
-What is the percentage change in cost of goods sold?

• A)25.00%
• B)35.00%
• C)-20.00%
• D)125.00%

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Definitions:

Internal Controls

Procedures and policies implemented by a company to safeguard assets, enhance operation efficiency, and ensure financial reporting accuracy.