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Which is the percentage for the horizontal analysis of cost

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Reference no: EM132907503

The following income statements for 20X7 and 20X8 are for Kaylee Inc., a client who owns a chain of restaurants.

                                                                                    20X8                           20X7

Revenue                                                     $13,378,554           $13,370,994

Cost of goods sold                                       10,775,151              10,665,152

Gross margin                                               2,603,403               2,705,842

Selling, general, and administrative expenses     1,550,215            1,415,165

Operating income                                           1,053,188           1,290,677

Net interest expense                                       135,165              157,485

Earnings before income taxes                          918,023               1,133,192

Income taxes                                               257,046                   317,294

Net income                                                   $ 660,977               $ 815,898

Problem 1: Kaylee Frye, the CEO, has recently heard the term "horizontal analysis" with respect to financial statement analysis. Which of the following is the percentage for the horizontal analysis of the cost of goods sold?

a) -3.79%

b) 1.02%

c) 1.03%

d) 80.54%

Reference no: EM132907503

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