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1 8 . 2 Horizontal Analysis and Vertical Analysis Why would an increase in sales revenue not necessarily signal an increase in net income? Income

18.2 Horizontal Analysis and Vertical Analysis
Why would an increase in sales revenue not necessarily signal an increase in net income?
Income tax expense may increase by a greater amount.
Sales returns and allowances may increase by a greater amount.
Other revenues and gains are greater than other expenses and losses.
Gross profit may increase by a greater percentage than sales revenue.
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