The Goodberry Corporation data for the current year and prior year is as follows: 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 12% of net sales revenue.
B)Both net income before income tax expense and net income increased by $135,000.
C)The current ratio is 1.06.
D)There was an increase in both net income before income tax expense and net income of 25%.

Question

The Goodberry Corporation data for the current year and prior year is as follows:  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 12% of net sales revenue. 
B)Both net income before income tax expense and net income increased by $135,000. 
C)The current ratio is 1.06. 
D)There was an increase in both net income before income tax expense and net income of 25%.

Quizplus · Accepted Answer

The question specifically asks for a report on net income before income tax expense and net income, and the only option that addresses both is D, which states that there was an increase in both categories of 25%. Options A and B only address one category, and option C is unrelated to the question.

The Goodberry Corporation Data for the Current Year and Prior