The Following Is Summary of Information Presented on the Financial

question 126

Multiple Choice

The following is summary of information presented on the financial statements of a company on December 31,2017. $$\begin{array} { | l | r | r | } \hline \mathbf { \text { Account}} & { \mathbf { 2 0 1 7 } } & { \mathbf { 2 0 1 6 } } \\\hline \text { Net Sales Revenue } & \$ 606,000 & \$ 504,000 \\\hline \text { Cost of Goods Sold } & \underline { 450,000 } & \underline { 400,000 } \\\hline \text { Gross Profit } & \$ 156,000 & \$ 104,000 \\\hline \text { Selling Expenses } & \underline { 52,000 } & \underline { 56,000 } \\\hline \text { Net Income Before Income Tax Expense } & \$ 104,000 & \$ 48,000 \\\hline \text { Income Tax Expense } & \underline { 37,000 } & \underline { 23,000 } \\\hline \text { Net Income } & \$ 67,000 & \$ 25,000 \\\hline\end{array}$$ With respect to net income,a horizontal analysis reveals ________.(Round your answer to two decimal places. )

• A)that net income is 168.00% of net sales revenue
• B)a $25,000 increase in net income
• C)a 168.00% decrease in net income
• D)a 168.00% increase in net income

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Definitions:

Individual Access

The right or ability of a person to obtain or use information, resources, or facilities, often in the context of privacy or data protection.

Openness

A personality trait or organizational culture characterized by transparency, willingness to share ideas, and receptiveness to new information.

Employee Relations

The management of relationships between employers and employees, aiming to establish and maintain productive, engaging, and harmonious work environments.

Organizational Culture

The core beliefs and assumptions that are widely shared by all organizational members.