Belmont Industries announces that its gross profit rose 5% but its income before income taxes fell.Which of the following statements is correct?
A) This is not possible given that net income is determined by gross profit.
B) This must mean that selling,general,and administrative expenses increased by more than 5%.
C) This must mean that sales revenue rose more than expenses.
D) This must mean that cost of goods sold decreased.
Correct Answer:
Verified
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