The Nichols Corporation data for the current year:

What would a horizontal analysis report with respect to net income before income tax expense and net income?
A)Both net income before tax expense and net income were 11.26% of net sales revenue.
B)Both net income before income tax expense and net income increased by $128,400.
C)The current ratio is 1:06.
D)There was an increase in both net income before income tax expense and net income of 14.00%.

Question

The Nichols Corporation data for the current year:

What would a horizontal analysis report with respect to net income before income tax expense and net income?
A)Both net income before tax expense and net income were 11.26% of net sales revenue. 
B)Both net income before income tax expense and net income increased by $128,400. 
C)The current ratio is 1:06. 
D)There was an increase in both net income before income tax expense and net income of 14.00%.

Quizplus · Accepted Answer

D)
Net Income Prior $60,000
Current 68,400
Increase 8,400/60,000 = 14.00%

The Nichols Corporation Data for the Current Year