Final answer:
To calculate the amount of change in horizontal analysis, subtract the prior period's value from the current period's value, and then divide by the prior period's value and multiply by 100 to get the percentage change. For instance, if the previous year's quantity was 1,600 units and the current year is 1,800 units, the percent change in quantity is 12.5%.
Step-by-step explanation:
To calculate the amount of change in horizontal analysis, you would compare the line item's current year value with the previous year's value. The formula to compute the percentage change is:
% change in quantity = ((Current Year amount - Previous Year amount) / Previous Year amount) x 100
For example, suppose in the base year, the quantity is 1,600 units and in the current year, it has changed to 1,800 units. The percentage change would be calculated as follows:
% change in quantity = ((1,800 - 1,600) / 1,600) x 100 = 12.5%
Essentially, the change is the difference between the two values, and the amount of change is expressed as a percentage of the value in the initial period.