se the following information to do a horizontal analysis of Rae Company's income statement for the current year and prior year Account Current year Prior year Dollar Change % Change Cost of goods sold $ 389 comma 000 $ 302 comma 000 Selling/general expense $ 63 comma 000 $ 41 comma 000 Gross profit $102,600 $76,800 Net income $17,160 $22,000 What is the percentage change in cost of goods sold? A. 79.79% B. 28.79% C. 25.33% D. 40.43%

Question

Business

Cherish Goodwin

16 January, 10:09

se the following information to do a horizontal analysis of Rae Company's income statement for the current year and prior year Account Current year Prior year Dollar Change % Change Cost of goods sold $ 389 comma 000 $ 302 comma 000 Selling/general expense $ 63 comma 000 $ 41 comma 000 Gross profit $102,600 $76,800 Net income $17,160 $22,000 What is the percentage change in cost of goods sold? A. 79.79% B. 28.79% C. 25.33% D. 40.43%

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Answers (1)

Know the Answer?

Rogelio Crawford · Answer 1

The Correct Answer is B. 28.79%

Explanation:

The percentage change in cost of goods sold is 28.79%. This is calculated by subtracting Current year Cost of Goods Sold from prior year Cost of Goods Sold and divide the answer by prior year Cost of Goods Sold. The answer is multiplied by 100 to get a percentage. The calculation will be [ ($389,000 - $302,000) / $302,000] * 100.