Question

A company has net sales revenue of $175000 reporting period and $148000 in the next. using horizontal analysis, it has experienced a decrease of what percentage?A. 15%B. 18%C. 8%D. 12%

Answer 1

A. 15%

Explanation:

We can determine the percentage using the following formula:

`\begin{gathered} r=\frac{\text{ fiinal value - initial value}}{\text{ initial value}}\cdot100 \\ \\ \text{ we replacing} \\ \\ r=(148000-175000)/(175000)\cdot100 \\ \\ r=-15.42\%=15\% \end{gathered}`

Therefore, the correct answer is A. 15%