Use the Following Information to Do a Horizontal Analysis of Magic

question 143

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 dollar change in gross profit?

• A)$20,000
• B)$(4,000)
• C)$26,600
• D)$178,600

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Definitions:

Communication Model

A framework that describes the various components and processes involved in the effective transmission and reception of messages.

Encode Message

The process of converting information or ideas into a coded form of communication for transmission to a receiver.

Grapevine Communication

Grapevine communication refers to the informal and often unofficial spread of information within an organization.

Sender and Receiver

Describes two roles in the communication process where the sender is the one who initiates the message and the receiver is the one who interprets or responds to the message.