The Following Is a Summary of Information Presented on the Financial

question 31

Multiple Choice

The following is a summary of information presented on the financial statements of a company on December 31,2019. $$\begin{array} { | l | r | r | } \hline { \text { Account } } & { \mathbf { 2 0 1 9 } } & { \mathbf { 2 0 1 8 } } \\\hline \text { Net Sales Revenue } & \$ 605,000 & \$ 504,000 \\\hline \text { Cost of Goods Sold } & \underline { 457,000 } & \underline { 402,000 } \\\hline \text { Gross Profit } & \$ 148,000 & \$ 102,000 \\\hline \text { Selling Expenses } & \underline { 50,000 } & \underline { 53,000 } \\\hline \text { Net Income Before Income Tax Expense } & \$ 98,000 & \$ 49,000 \\\hline \text { Income Tax Expense } & \underline { 37,000 } & \underline { 20,000 } \\\hline \text { Net Income } & \$ 61,000 & \$ 29,000 \\\hline\end{array}$$ With respect to net income,a horizontal analysis reveals ________.(Round your answer to two decimal places.)

• A) that net income is 11.03% of net sales revenue
• B) a $29,000 increase in net income
• C) a 110.34% decrease in net income
• D) a 110.34% increase in net income

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Shocked

A reaction characterized by surprise, disbelief, or dismay, often caused by an unexpected event or revelation.

Avoid

To intentionally stay away from or prevent something from happening.

Illness

Illness refers to a state of poor health, characterized by symptoms, diseases, or disorders affecting an individual's physical or mental well-being.

Skin Pain

Discomfort or pain originating from the skin, often due to injury, infection, or various dermatological conditions.