The following is a summary of information presented on the financial statements of a company on December 31, 2025. Account Net Sales Revenue Cost of Goods Sold Gross Profit Selling Expenses Net Income Before Income Tax Expense Income Tax Expense Net Income With respect to gross profit, a horizontal analysis reveals A. an increase of 31.25% B. an increase of 19.64% OC. an increase of 24% D. an increase of 45.45% 2025 $600,000 456,000 144,000 51,000 93,000 39,000 $54,000 2024 $504,000 405,000 99,000 54,000 45,000 23,000 $22,000 (Round your answer to two decimal places.)
The following is a summary of information presented on the financial statements of a company on December 31, 2025. Account Net Sales Revenue Cost of Goods Sold Gross Profit Selling Expenses Net Income Before Income Tax Expense Income Tax Expense Net Income With respect to gross profit, a horizontal analysis reveals A. an increase of 31.25% B. an increase of 19.64% OC. an increase of 24% D. an increase of 45.45% 2025 $600,000 456,000 144,000 51,000 93,000 39,000 $54,000 2024 $504,000 405,000 99,000 54,000 45,000 23,000 $22,000 (Round your answer to two decimal places.)
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
Net Sales Revenue
Cost of Goods Sold
Gross Profit
Selling Expenses
Net Income Before Income Tax Expense
Income Tax Expense
Net Income
With respect to gross profit, a horizontal analysis reveals
A. an increase of 31.25%
B. an increase of 19.64%
C. an increase of 24%
D. an increase of 45.45%
2025
$600,000
456,000
144,000
51,000
93,000
39,000
$54,000
2024
$504,000
405,000
99,000
54,000
45,000
23,000
$22,000.
(Round your answer to two decimal places.)
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