Question

A company has net sales revenue of $250,000 in 1 reporting period And $280,000 in the next. using horizontal analysis, it has experienced an increase of what percentage?A. 48%B. 36%C. 12%D. 24%

Answer 1

`\begin{gathered} We\text{ can use the following formula to do a horizontal analysis:} \\ Horizintal\text{ analysis percentage = }\frac{Amount\text{ in Comparison Year - Amount in Base Year}}{Amount\text{ in Base Year}} \\ =\text{ }(280000-250000)/(250000)*100 \\ =\text{ 12\%} \end{gathered}`

Correct Answer: C. 12%