The income statements for Urban Outfits, Inc. are presented below: Urban Outfits, Inc. Income Statements Year Ended December 31 Current Year Prior Year Sales Revenue $ 806,559 $ 747,270 Cost of Goods Sold 403,589 373,505 Gross Profit 402,970 373,765 Operating and Other Expenses 141,050 129,500 Interest Expense 7,750 18,000 Income Tax Expense 48,200 46,700 Net Income $ 205,970 $ 179,565 Required: Prepare a horizontal analysis of the income statement above.

Answer and Explanation:

As per the data given in the question,

                Prior year          Current year        Increase in $       increase in %

Sales          $747,270          $806,559              $59,289                  7.93%

COGS         $373,505         $403.589              $30,084                  8.05%

Gross Profit $373,765        $402,970              $29,205                  7.81%

Operating and  

other expenses$129,500   $141,050               $11,550                    8.92%  

Interest expense $18,000   $7,750                -$10,250                  -56.94%

Income tax         $46,700    $48,200              $1,500                      3.21%

Net income        $179,565   $205,970            $26,405                  14.70%

the correct answer would be b, when, queen, calder hall and london.

explanation:

we always capitalize words when a paragraph or sentence is starting, when an important name is used, when a place is being written, or simply when a noun is used, etc. so in this sentence, sentence is starting from 'when', so it will be written in capital letters. secondly, queen is considered to be an important person, so it will also be written in capital letter. next, the name of the town is mentioned, i-e calder hall, which will also be written in capital letters. in the last,   city name is being used, 'london', which will also be written in capital letters. so option b is the most appropriate one.