The Following Is a Summary of Information Presented on the Financial

question 103

Multiple Choice

The following is a summary of information presented on the financial statements of a company on December 31, 2019. $$\begin{array} { | l | r | r | } \hline \text { Account } & { \mathbf { 2 0 1 9 } } & { \mathbf { 2 0 1 8 } } \\\hline \text { Net Sales Revenue } & \$ 607,000 & \$ 502,000 \\\hline \text { Cost of Goods Sold } & \underline { 450,000 } & \underline { 406,000 } \\\hline \text { Gross Profit } & 157,000 & 96,000 \\\hline \text { Selling Expenses } & \underline { 54,000 } & \underline { 52,000 } \\\hline \text { Net Income Before Income Tax Expense } & 103,000 & 44,000 \\\hline \text { Income Tax Expense } & \underline { 38,000 } & \underline { 24,000 } \\\hline \text { Net Income } & \$ 65,000 & \$ 20,000 \\\hline\end{array}$$ With respect to net sales revenue, a horizontal analysis reveals ________.

• A) a 20.92% increase in net sales revenue
• B) a 240.62% decrease in net sales revenue
• C) a decrease of $44,000 in net sales revenue
• D) a $44,000 increase in net sales revenue

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Definitions:

Price

The quote of currency expected, called-for, or donated as payoff for something.

Traffic Crossing

A designated place where vehicles and pedestrians are regulated in their movement to safely cross paths.

Efficient Use

The optimization of resources or practices to achieve a goal with minimal waste and maximal effectiveness.

Demand Curve

A visual chart that illustrates how the demand for a product varies with its price, indicating the amount shoppers are willing to buy at different price levels.