The following is a summary of information presented on the financial statements of a company on December 31,2019. $$\begin{array} { | l | r | r | }
\hline { \text { Account } } & { \mathbf { 2 0 1 9 } } & { \mathbf { 2 0 1 8 } } \
\hline \text { Net Sales Revenue } & \$ 601,000 & \$ 503,000 \
\hline \text { Cost of Goods Sold } & 457,000 & \underline { 406,000 } \
\hline \text { Gross Profit } & 144,000 & 97,000 \
\hline \text { Selling Expenses } & \underline { 53,000 } & \underline { 55,000 } \
\hline \text { Net Income Before Income Tax Expense } & 91,000 & 42,000 \
\hline \text { Income Tax Expense } & \underline { 42,000 } & \underline { 20,000 } \
\hline \text { Net Income } & \$ 49,000 & \$ 22,000 \
\hline
\end{array}$$ With respect to net sales revenue,a horizontal analysis reveals ________.

Question

The following is a summary of information presented on the financial statements of a company on December 31,2019. $$\begin{array} { | l | r | r | } 
\hline  { \text { Account } } &  { \mathbf { 2 0 1 9 } } & { \mathbf { 2 0 1 8 } } \
\hline \text { Net Sales Revenue } & \$ 601,000 & \$ 503,000 \
\hline \text { Cost of Goods Sold } & 457,000 & \underline { 406,000 } \
\hline \text { Gross Profit } & 144,000 & 97,000 \
\hline \text { Selling Expenses } & \underline { 53,000 } & \underline { 55,000 } \
\hline \text { Net Income Before Income Tax Expense } & 91,000 & 42,000 \
\hline \text { Income Tax Expense } & \underline { 42,000 } & \underline { 20,000 } \
\hline \text { Net Income } & \$ 49,000 & \$ 22,000 \
\hline
\end{array}$$ With respect to net sales revenue,a horizontal analysis reveals ________.

Quizplus · Accepted Answer

Without the actual amounts provided, we cannot calculate the exact dollar amount change in net sales revenue. However, a horizontal analysis compares the change in a financial statement item from one period to another. Since no information is given about the previous period, we can only determine that there is a 19.48% increase in net sales revenue based on the presented data. Therefore, the best choice is A.

The Following Is a Summary of Information Presented on the Financial