SECOND QUESTION Dewey Cheatum & Howe is a non-issuer manufacturer of sophisticated widgets developed and built using ever-changing, cutting edge, technology. Your CPA firm has audited DC&H for each of the last five years. You expect DC&H will likely have an initial public offering in the next year. You are beginning your field work and notice the following information while performing your preliminary analytical review: CURRENT YEAR PRIOR YEAR AUDITED UNAUDITED YEAR-OVER-YEAR AMOUNTS AMOUNTS INCREASE (DECREASE) Sales 147,325,000 165,299,000 17,974,000 Cost of Goods Sold 81,029,000 57,854,000 (23,175,000) Income Before Income Taxes 36,462,000 64,467,000 28,005,000 Net Income 23,700,000 54,797,000 31,097,000 11. What is DC&H's effective income tax rate for the prior year and the current year? Put forward two hypotheses that might explain the change