Question

se the following information to do a horizontal analysis of Rae​ Company's income statement for the current year and prior year Account Current year Prior year Dollar Change ​% Change Cost of goods sold $ 389 comma 000 $ 302 comma 000 ​Selling/general expense $ 63 comma 000 $ 41 comma 000 Gross profit ​$102,600 ​$76,800 Net income ​$17,160 ​$22,000 What is the percentage change in cost of goods sold? A. 79.79% B. 28.79% C. 25.33% D. 40.43%

Answer 1

The Correct Answer is B. 28.79%

Step-by-step explanation:

The percentage change in cost of goods sold is 28.79%. This is calculated by subtracting Current year Cost of Goods Sold from prior year Cost of Goods Sold and divide the answer by prior year Cost of Goods Sold. The answer is multiplied by 100 to get a percentage. The calculation will be [($389,000 - $302,000) / $302,000] * 100.