Gavette Company reported the following information for the current year and prior year: What would a vertical analysis report with respect to current year net income before income tax and income tax expense?
A)An increase of $17,768 from prior to current year
B)An increase of both net income before income tax and income tax of 21.00%
C)A decrease of $17,768 in net income before tax
D)Net income before tax of 21.00% and income tax of 3.09% of net sales revenue

Question

Gavette Company reported the following information for the current year and prior year:  What would a vertical analysis report with respect to current year net income before income tax and income tax expense?
A)An increase of $17,768 from prior to current year 
B)An increase of both net income before income tax and income tax of 21.00% 
C)A decrease of $17,768 in net income before tax 
D)Net income before tax of 21.00% and income tax of 3.09% of net sales revenue

Quizplus · Accepted Answer

The Answer of Gavette Company reported the following information for the current year and prior year:  What would a vertical analysis report with respect to current year net income before income tax and income tax expense?
A)An increase of $17,768 from prior to current year 
B)An increase of both net income before income tax and income tax of 21.00% 
C)A decrease of $17,768 in net income before tax 
D)Net income before tax of 21.00% and income tax of 3.09% of net sales revenue

Gavette Company Reported the Following Information for the Current Year