8 The following is a summary of information presented on the

8) The following is a summary of information presented on thefinancial statements of a compa December 31, 2017. Account Net Sales Revenue Cost of Goods Sold Gross Profit 2017 2016 $604,000 $504,000 53,000 400,000 Selling Expenses Net Income Before Income Tax Expense Income Tax Expense Net Income 151000 104,000 58,000 93,000 41,000 $52,000$33,000 50,00 54,000 With respect to net sales revenue, a horizontal analysis reveals A) a 19.84% increase in net sales revenue B) a 238.48% decrease in net sales revenue C) a decrease of $53,000 in net sales revenue D) a $53,000 increase in net sales revenue data

Solution

net sales revenue in 2016 = $504,000

net sales revenue in 2017 = $604,000

Therefore % Increase in net sales revenue= (604,000-504,000 / 504,000)*100 = 19.84%

ANSWER is A