Question

Assume the following sales data for a company: 2018 $980,000 2017 875,000 2016 700,000 If you are conducting a horizontal analysis and using 2016 as the base year, what is the percentage increase in sales from 2016 to 2017

Answer 1

25%

Step-by-step explanation:

The percentage increase in sales from 2016 to 2017:

= Increase in sales / Base year * 100

= (875,000-700,000) / 700,000 * 100

= $175,000/700,000 *100

= 0.25 * 100

= 25%