MacMan, Inc The Horizontal Analysis Shows That Cost of Goods Sold Has

question 101

Multiple Choice

MacMan, Inc. reported the following data: $\begin{array}{|l|c|c|c|c|}\hline & 2019 & 2018 & \text { Amount } & \text { Percentage } \\\hline \text { Revenues } & \$ 6370 & \$ 4940 & \$ 1430 & 28.95\% \\\hline \text { Cost of goods sold. } & 3450 & 2200 & 1250 & 56.82 \%\\\hline \text { Gross profit } & 2920 & 2740 & 180 & 6.57\%\\\hline \text { Operating expenses: } & & & & \\\hline \text { Sales and marketing expense } & 710 & 630 & 80 & 12.7\% \\\hline \begin{array}{l}\text { General and administrative } \\\text { expenses }\end{array} & 410 & 425 & -15 & -3.53\% \\\hline \begin{array}{l}\text { Research and development } \\\text { expense }\end{array} & 480 & 490 & -10 & -2.04\% \\\hline \text { Other expense } & 440 & 710 & (270) & (38.03) \% \\\hline \text { Total operating expenses } & 2040 & \underline{2255} & (215) & (9.53 ) \%\\\hline \text { Income before income tax } & 880 & 485 & 395 & 81.44 \% \\\hline \text { Income tax expense } & 260 & 240 & \$ 20 & 8.33\% \\\hline \text { Net income (loss) } & \$ 620 & \$ 245 & \$ 375 & 153.06\% \\\hline\end{array}$
The horizontal analysis shows that cost of goods sold has ________. (Round your answer to two decimal places.)

• A) increased by 28.95%
• B) decreased by 28.95%
• C) increased by 56.82%
• D) decreased by 56.82%

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