Reimer Company reports the following data: 2019 2018 100% 100% Sales Cost of Goods Sold 21% 11% Gross Profit 79% 89% Operating Expenses 45% 35% Net Income 34% 54% When evaluating the results of operations, what can be said about Reimer Company? O A. Using horizontal analysis, the company's profitability declined in 2019. B. Using horizontal analysis, the company's profitability declined in 2018. OC. Using vertical analysis, the company's profitability declined in 2018. OD. Using vertical analysis, the company's profitability declined in 2019.
Reimer Company reports the following data: 2019 2018 100% 100% Sales Cost of Goods Sold 21% 11% Gross Profit 79% 89% Operating Expenses 45% 35% Net Income 34% 54% When evaluating the results of operations, what can be said about Reimer Company? O A. Using horizontal analysis, the company's profitability declined in 2019. B. Using horizontal analysis, the company's profitability declined in 2018. OC. Using vertical analysis, the company's profitability declined in 2018. OD. Using vertical analysis, the company's profitability declined in 2019.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 1MCQ
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