The vertical analysis of the income statement of Settler, Inc. is as shown below:

Settler, Inc.

Comparative Income Statement

Years Ended December 31, 2019 and 2018

Settler, Inc. Comparative Income Statement Years Ended December 31, 2019 and 2018
(In millions)	2019	Percent of Total	2018	Percent of Total
Net Sales	$6,355	100.0%	$4,920	100.0%
Cost of Goods Sold	3,370	53.0	2,200	44.7
Gross Profit	2,985	47.0	2,720	55.3
Operating Expenses:
Selling Expenses	675	10.6	580	11.8
Administrative Expenses	410	6.5	425	8.6
Total Operating Expenses	1,085	17.1	1,005	20.4
Operating Income	1,900	29.9	1,715	34.9
Other Income and (Expenses):
Interest Expense	(400)	(6.3)	(695)	(14.1)
Total Other Income and (Expenses)	(400)	(6.3)	(695)	(14.1)
Income Before Income Taxes	1,500	23.6	1,020	20.7
Income Tax Expense	230	3.6	210	4.3
Net Income	$1,270	20.0%	$810	16.5%

The 20% shown for net income in 2019 signifies that net income ________.

A.

increased by 20% over the previous year

B.

is 20% of gross profit

C.

equals 20 times of the income before income tax

D.

is 20% of net sales revenues