7) A company reported $75,000 of income for 20X1, $80,000 for 20X2, and $90,000 for 20X3. The percentage change in net income from 20X2 to 20X3 was:A) 9.1%B) 11.1%C) 12.5%D) 16.7%8) A company reported $75,000 of income for 20X1, $80,000 for 20X2, and $90,000 for 20X3. The percentage change in net income from 20X1 to 20X2 was:A) 6.7%B) 6.25%C) 5.9%D) 10.7%9) Given the following data for total sales:20X1 $50,00020X2 $55,00020X3 $56,00020X4 $53,000A table showing trend percentages for 20X1 to 20X4, respectively, using 20X1 as the base year, would show:A) 100%, 110%, and 95%B) 100%, 110%, 112%, and 106%C) 100%, 10%, 2%, and (5%)D) 94%, 1.04%, 1.06%, and 100%10) When calculating trend percentages, all percentages shown are relative to:A) the current yearB) the base yearC) the immediately preceding yearD) the average index calculated for all the years shown11) Which of the following would be most likely to reveal that cost of goods sold increased by $75,000 from 20X1 to 20X2?A) horizontal analysisB) trend analysisC) vertical analysisD) ratio analysis12) Hamilton Corporation reports the following data:Net sales $ 370,000 Cost of goods sold 250,000Gross margin $ 120,000If net sales increases by 15%, and cost of goods sold increases by 20%, gross margin would:A) increase by 4.6% B) decrease by 4.6%C) decrease by 4.4%D) increase by 4.4%