The horizontal analysis shows that cost of goods sold has ________. (Round answe
ID: 2328821 • Letter: T
Question
The horizontal analysis shows that cost of goods sold has ________. (Round answer two decimal places.)
A. decreased by 28.4328.43%
B. decreased by 54.0954.09%
C.increased by 28.4328.43%
D.increased by 54.0954.09%
2019 $6,370 3,390 2,980 2018 $4,960 2,200 2,760 Amount $1,410 1,190 220 Percentage 28.43% 54.09% Revenues Cost of goods sold Gross profit Operating expenses Sales and marketing expense General and administrative expenses Research and development expense Other expense Total operating expenses Income before income tax Income tax expense Net income (loss) 730 580 150 25.86% 440 445 (5) (1.12)% 530 440 2,140 840 280 $560 400 720 2,145 615 250 $365 130 (280) (5) 225 $30 $195 325% (38.89)% (0.23)% 36.59% 12% 53.42%Explanation / Answer
The horizontal analysis shows that cost of goods sold has increased by 54.09%
In 2018 cogs are $2,200 and in 2019 cogs are $3,390 with a net increase of $1,190 ($3,390 - $2,200) and the percentage increase in cogs is = $1,190 / $2,200 = 54.09%
Hence, Cogs increased by 54.09% in year 2019 from previous year.
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