Question

​MacMan, Inc. reported the following​ data: 2019 2018 Amount Percentage Revenues $ 6 comma 390 $ 4 comma 990 $ 1 comma 400 28.06​% Cost of goods sold 3 comma 400 2 comma 500 900 36​% Gross profit 2 comma 990 2 comma 490 500 20.08​% Operating​ expenses: Sales and marketing expense 685 640 45 7.03​% General and administrative expenses 460 430 30 6.98​% Research and development expense 470 390 80 20.51​% Other expense 460 740 ​(280​) ​(37.84​)% Total operating expenses 2 comma 075 2 comma 200 ​(125​) ​(5.68​)% Income before income tax 915 290 625 215.52​% Income tax expense 260 240 $ 20 8.33​% Net income​ (loss) $ 655 $ 50 $ 605 1 comma 210​% The horizontal analysis shows that cost of goods sold has​ ________. (Round your answer to two decimal​ places.)

Answer 1

Answer- The horizontal analysis shows that cost of goods sold has increased by 40.83% (Option A).

Explanation- Cost of goods sold in 2018 = $2400

Cost of goods sold in 2019 = $3380

Increase in cost of goods sold = $3380-$2400

= $980

% increased in cost of goods sold = ($980/$2400)*100

= 40.83%