The following is summary of information presented on the financial statements of a company on December 31,2017. $$\begin{array} { | l | r | r | }
\hline \mathbf { \text { Account}} & { \mathbf { 2 0 1 7 } } & { \mathbf { 2 0 1 6 } } \
\hline \text { Net Sales Revenue } & \$ 606,000 & \$ 504,000 \
\hline \text { Cost of Goods Sold } & \underline { 450,000 } & \underline { 400,000 } \
\hline \text { Gross Profit } & \$ 156,000 & \$ 104,000 \
\hline \text { Selling Expenses } & \underline { 52,000 } & \underline { 56,000 } \
\hline \text { Net Income Before Income Tax Expense } & \$ 104,000 & \$ 48,000 \
\hline \text { Income Tax Expense } & \underline { 37,000 } & \underline { 23,000 } \
\hline \text { Net Income } & \$ 67,000 & \$ 25,000 \
\hline
\end{array}$$ With respect to net income,a horizontal analysis reveals ________.(Round your answer to two decimal places. )

Question

The following is summary of information presented on the financial statements of a company on December 31,2017. $$\begin{array} { | l | r | r | } 
\hline \mathbf { \text { Account}} &  { \mathbf { 2 0 1 7 } } & { \mathbf { 2 0 1 6 } } \
\hline \text { Net Sales Revenue } & \$ 606,000 & \$ 504,000 \
\hline \text { Cost of Goods Sold } & \underline { 450,000 } & \underline { 400,000 } \
\hline \text { Gross Profit } & \$ 156,000 & \$ 104,000 \
\hline \text { Selling Expenses } & \underline { 52,000 } & \underline { 56,000 } \
\hline \text { Net Income Before Income Tax Expense } & \$ 104,000 & \$ 48,000 \
\hline \text { Income Tax Expense } & \underline { 37,000 } & \underline { 23,000 } \
\hline \text { Net Income } & \$ 67,000 & \$ 25,000 \
\hline
\end{array}$$ With respect to net income,a horizontal analysis reveals ________.(Round your answer to two decimal places. )

Quizplus · Accepted Answer

The net income increased from $25,000 in 2016 to $67,000 in 2017. The increase is calculated as $(67,000 - 25,000) / 25,000 \times 100 = 168.00\%$.

The Following Is Summary of Information Presented on the Financial