76.

Which income statement line item had the largest percentage increase from the prior year to the current year?

	Current Year	Prior Year
Sales	$120,000	$100,000
Cost of Goods Sold	80,000	60,000
Depreciation Expense	30,000	20,000
Interest Expense	2,000	5,000

A.	Depreciation Expense

B.	Cost of Goods Sold

C.	Interest Expense

D.

Sales

The comparative financial statements of B. Darin include the following data:

	Current Year	Prior Year
Income Statement
Net Sales Revenue	$130,000	$100,000
Cost of Goods Sold	55,000	47,000
Operating Expenses	39,000	32,000
Interest Expense	3,500	3,500
Income Tax Expense	5,000	4,000
Net Income	27,500	13,500
Balance Sheet
Current Assets	115,000	95,000
Plant, Property and Equipment, Net	98,000	105,000
Current Liabilities	45,000	38,000
Long-Term Liabilities	43,000	43,000
Stockholders Equity	125,000	119,000
Total Liabilities & Stockholders Equity	213,000	200,000

77.

Use the information above to answer the following question. Which of the following would be shown on B. Darin's horizontal analysis when calculating percentage changes from the prior year to the current year?

A.	An increase in sales revenue of 23%

B.	An increase in gross profit of 41.5%

C.	An increase in interest expense of 100%

D.	An increase in net income of 57%

78.

Net income was $418,600 in the current year and $364,000 in the prior year. The year-to-year percentage change in net income is closest to:

A.

15%.

B.

55%.

C.

87%.

D.

13%.

79.

A company's comparative balance sheet show total assets of $990,000 and $900,000, for the current and prior years, respectively. The percentage change to be reported in the horizontal analysis is an increase of:

A.

10%.

B.

9%.

C.

5%.

D.

4%.

80.

If you wish to examine how one aspect of a business is doing relative to other aspects of the business at the current time, you are most likely to use:

A.	time-series analysis.

B.	ratio analysis.

C.	horizontal analysis.

D.	cross-sectional analysis.