The McCumber Corporation data for the current year: With respect to net income before income tax expense and net income, what would a horizontal analysis report?
A)There was an increase in both net income before income tax expense and net income of 15.00%.
B)Both net income before income tax expense and net income increased by $129,000.
C)The current ratio is 0.92.
D)Both net income before tax expense and net income were 11.17% of net sales revenue.

Question

The McCumber Corporation data for the current year:  With respect to net income before income tax expense and net income, what would a horizontal analysis report?
A)There was an increase in both net income before income tax expense and net income of 15.00%. 
B)Both net income before income tax expense and net income increased by $129,000. 
C)The current ratio is 0.92. 
D)Both net income before tax expense and net income were 11.17% of net sales revenue.

Quizplus · Accepted Answer

The question only mentions net income before income tax expense and net income, and based on the given data, there is no information about the current ratio or net income as a percentage of net sales revenue. Therefore, the correct answer is A, which states that both net income before income tax expense and net income increased by 15.00%.

The McCumber Corporation Data for the Current Year: with Respect