Use the Following Information to Do a Horizontal Analysis of Magic

question 97

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 selling/general expenses?

• A)$100,000
• B)$75,000
• C)$(4,400)
• D)$20,000

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Definitions:

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A legal venue that handles minor civil disputes and claims typically involving small sums of money, offering a quicker and less complicated process than higher courts.

Duress

Coercion or pressure exerted upon someone to compel that person to act in a way they would not ordinarily act.

Unduly Influenced

A legal term referring to a situation where an individual is persuaded or coerced into acting against their free will or best interest, often in contracts or wills.

Tax Evasion

The illegal act of not paying taxes that are legally owed, often by concealing income or inflating deductions.