Question

Complete the horizontal analysis below: (round to the nearest tenth percent if applicable) Year 2 Year 1 Amount − Percent Change $88,338 $92,147 ? ?

Answer 1

The horizontal analysis for Year 2 compared to Year 1 is a decrease of 4.1%.

Step-by-step explanation:

To calculate the percent change between Year 1 and Year 2, we use the formula: (New Amount - Old Amount) / Old Amount * 100. In this case, the old amount is $92,147 and the new amount is $88,338.

So the percent change is (($88,338 - $92,147) / $92,147) * 100 = -4.1%.

Therefore, the horizontal analysis for Year 2 compared to Year 1 is a decrease of 4.1%.