The following is a summary of information presented on the financial statements of a company on December 31, 2025. Account 2025 2024 Net Sales Revenue $605,000 456.000 $508,000 405.000 103,000 54.000 49,000 23.000 Cost of Goods Sold Gross Profit 149,000 Selling Expenses Net Income Before Income Tax Expense Income Tax Expense 51.000 98,000 39.000 $59,000 Net Income $26,000 With respect to gross profit, a horizontal analysis reveals (Round your answer to two decimal places.) O A. an increase of 20.28% O B. an increase of 30.87% O C. an increase of 24.63% O D. an increase of 44.66%
The following is a summary of information presented on the financial statements of a company on December 31, 2025. Account 2025 2024 Net Sales Revenue $605,000 456.000 $508,000 405.000 103,000 54.000 49,000 23.000 Cost of Goods Sold Gross Profit 149,000 Selling Expenses Net Income Before Income Tax Expense Income Tax Expense 51.000 98,000 39.000 $59,000 Net Income $26,000 With respect to gross profit, a horizontal analysis reveals (Round your answer to two decimal places.) O A. an increase of 20.28% O B. an increase of 30.87% O C. an increase of 24.63% O D. an increase of 44.66%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:The following is a summary of information presented on the financial statements of a company on
December 31, 2025.
Account
2025
2024
Net Sales Revenue
$605,000
456.000
149,000
51.000
98,000
$508,000
405.000
103,000
54.000
49,000
23.000
Cost of Goods Sold
Gross Profit
Selling Expenses
Net Income Before Income Tax Expense
Income Tax Expense
Net Income
39.000
$59,000
$26,000
With respect to gross profit, a horizontal analysis reveals
(Round your answer to two decimal places.)
O A. an increase of 20.28%
O B. an increase of 30 87%
OC. an increase of 24.63%
O D. an increase of 44.66%
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