Selected information from the financial statements of Yellow Harvest includes the following: 2020 2019 Net sales.......................................... P2,200,000 P2,000,000 Total Expenses................................... 1,998,000 1,800,000 Required: a. Compute the percentage change in 2020 for the amounts of (1) net sales and (2) total expenses b. Using the information developed in a part a, express your opinion as to whether the company’s net income for 2020: 1. Increased at a greater or lower percentage rate than did net sales. 2. Represented a larger or smaller percentage of net sales revenue than in 2019. For each answer, explain your reasoning without making any computations or references to peso amounts.
Selected information from the financial statements of Yellow Harvest includes the following:
2020 2019
Net sales.......................................... P2,200,000 P2,000,000
Total Expenses................................... 1,998,000 1,800,000
Required:
a. Compute the percentage change in 2020 for the amounts of (1) net sales and (2) total expenses
b. Using the information developed in a part a, express your opinion as to whether the company’s net income for 2020:
1. Increased at a greater or lower percentage rate than did net sales.
2. Represented a larger or smaller percentage of net sales revenue than in 2019. For each answer, explain your reasoning without making any computations or references to peso amounts.
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