Solved

MacMan, Inc The Horizontal Analysis Shows That Cost of Goods Sold Has

Question 32

Multiple Choice

MacMan, Inc. reported the following data: 20192018 Amount  Percentage  Revenues $6370$4940$143028.95% Cost of goods sold. 34502200125056.82% Gross profit 292027401806.57% Operating expenses:  Sales and marketing expense 7106308012.7% General and administrative  expenses 410425153.53% Research and development  expense 480490102.04% Other expense 440710(270) (38.03) % Total operating expenses 20402255(215) (9.53) % Income before income tax 88048539581.44% Income tax expense 260240$208.33% Net income (loss)  $620$245$375153.06%\begin{array}{|l|c|c|c|c|}\hline & 2019 & 2018 & \text { Amount } & \text { Percentage } \\\hline \text { Revenues } & \$ 6370 & \$ 4940 & \$ 1430 & 28.95\% \\\hline \text { Cost of goods sold. } & 3450 & 2200 & 1250 & 56.82 \%\\\hline \text { Gross profit } & 2920 & 2740 & 180 & 6.57\%\\\hline \text { Operating expenses: } & & & & \\\hline \text { Sales and marketing expense } & 710 & 630 & 80 & 12.7\% \\\hline \begin{array}{l}\text { General and administrative } \\\text { expenses }\end{array} & 410 & 425 & -15 & -3.53\% \\\hline \begin{array}{l}\text { Research and development } \\\text { expense }\end{array} & 480 & 490 & -10 & -2.04\% \\\hline \text { Other expense } & 440 & 710 & (270) & (38.03) \% \\\hline \text { Total operating expenses } & 2040 & \underline{2255} & (215) & (9.53 ) \%\\\hline \text { Income before income tax } & 880 & 485 & 395 & 81.44 \% \\\hline \text { Income tax expense } & 260 & 240 & \$ 20 & 8.33\% \\\hline \text { Net income (loss) } & \$ 620 & \$ 245 & \$ 375 & 153.06\% \\\hline\end{array}
The horizontal analysis shows that cost of goods sold has ________. (Round your answer to two decimal places.)


A) increased by 28.95%
B) decreased by 28.95%
C) increased by 56.82%
D) decreased by 56.82%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents