Question

A company has net sales revenue of $250000 in 1 reporting. And 280000 in the next. Using horizontal analysis it has experienced an increase of what percentage? A.48%B38% C 12% D 24 %

Answer 1

Answer: A company's revenue has gone from $250,000 to $280,000 we have to find the percentage increase of the revenue:

`\begin{gathered} P=(\Delta R)/(R_1)=((R_2-R_1))/(R_1) \\ \\ P=((\$280,000-\$250,000))/((\$250,000))=(\$30,000)/(\$250,000)=0.12 \\ \\ P=0.12 \\ \\ \therefore\Rightarrow \\ \\ P=12\% \end{gathered}`

Therefore the answer is:

`\text{ Option\lparen C\rparen}`