Question

Wire enterprises reported sales revenue totaling $560,000, $670,000 and $1,675,000 in the years, 2014, 2015, and 2016, respectively.

Performing horizontal analysis, what is the percentage change for 2016?

Answer 1

%change is sales= 150% increase

Step-by-step explanation:

Giving the following information:

Sales:

$560,000, $670,000 and $1,675,000 in the years, 2014, 2015, and 2016, respectively.

Performing a horizontal analysis, we will take 2015 as the base year.

%change is sales= (2016 - 2015)/2015

%change is sales= [(1,675,000 - 670,000)/670,000]*100

%change is sales= 150% increase