50. Income Statement Reynolds Corp. For the Periods Ending June 30, 20X3, 20X2, 20X1 20X3 20X2 Sales 18,848 12,445 Cost of Goods Sold 10,598 6,833 Gross Profit 8,250 5,612 20X1 8,213 4,523 3,690 967 3,366 1,889 General and Administrative Expenses Research and Development costs 149 1,335 895 7,134 906 161 77 217 911 64 2 Income from Operations Net Interest Expense Loss on sale of receivables, factored 14 6,903 2,268 845 556 668 284 Income before income taxes Provision for income taxes 289 384 4,635 Net income 9 at Use the above information to answer the next 2 questions: When examining the change in Research and Development expenses from 20x2 to 20x3, this type of measurement is called analysis. a. Vertical c. Horizontal b. Stratified d. Ratio 51. Using the above income statement information for Reynolds Corp., when conducting vertical analysis for the 20X3 period, the percentage used to describe sales would be measured as SALES/NET INCOME. a. True b. False