The Following Is a Summary of Information Presented on the Financial

question 47

Multiple Choice

The following is a summary of information presented on the financial statements of a company on December 31,2019. $$\begin{array} { | l | r | r | } \hline { \text { Account } } & { \mathbf { 2 0 1 9 } } & { \mathbf { 2 0 1 8 } } \\\hline \text { Net Sales Revenue } & \$ 601,000 & \$ 503,000 \\\hline \text { Cost of Goods Sold } & 457,000 & \underline { 406,000 } \\\hline \text { Gross Profit } & 144,000 & 97,000 \\\hline \text { Selling Expenses } & \underline { 53,000 } & \underline { 55,000 } \\\hline \text { Net Income Before Income Tax Expense } & 91,000 & 42,000 \\\hline \text { Income Tax Expense } & \underline { 42,000 } & \underline { 20,000 } \\\hline \text { Net Income } & \$ 49,000 & \$ 22,000 \\\hline\end{array}$$ With respect to net sales revenue,a horizontal analysis reveals ________.

• A) a 19.48% increase in net sales revenue
• B) a 237.77% decrease in net sales revenue
• C) a decrease of $51,000 in net sales revenue
• D) a $51,000 increase in net sales revenue

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Definitions:

Leisure

Time free from work or duties, which can be used for rest, recreation, or other personal activities.

Parallel Fashion

A manner in which activities or processes occur simultaneously or in a coordinated manner, often leading to increased efficiency or synchronization.

Slutsky Equation

A formula that decomposes the effect of a price change into a substitution effect and an income effect on the consumption of goods.

Extra Income Effect

The change in an individual's consumption choices resulting from a change in real income, due to factors other than a direct income increase.