JKJ Company had gross profit of $75,000 in 2027, $52,000 in 2026, $41,000 in 2025, and $45,000 in 2024. Management determined that the increase in sales relative to 2024 was 66.7%. What financial statement analysis tool did management use? common-size analysis ratio analysis horizontal analysis vertical analysis
JKJ Company had gross profit of $75,000 in 2027, $52,000 in 2026, $41,000 in 2025, and $45,000 in 2024. Management determined that the increase in sales relative to 2024 was 66.7%. What financial statement analysis tool did management use? common-size analysis ratio analysis horizontal analysis vertical analysis
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:JKJ Company had gross profit of $75,000 in 2027, $52,000 in 2026, $41,000 in 2025, and $45,000 in 2024. Management determined
that the increase in sales relative to 2024 was 66.7%. What financial statement analysis tool did management use?
common-size analysis
O ratio analysis
horizontal analysis
O vertical analysis
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