Question

Richardson Company has a condensed income statement as shown. Year 2 Year 1 Sales $150,000 $165,500 Total operating expenses 133,000 147,500 Net income 17,000 18,000 Using horizontal analysis, calculate the amount and percent change for sales. Round percentages to one decimal place. a.$15,500, 19.6% b.($15,500), (10.3%) c.$15,500, 10.3% d.($15,500), (9.4%)

Answer 1

Answer:

Explanation:

Horizontal analysis

                                     A                        B                      C=B-C             D=C/A

                                   Year-1                  Year-2              Change       Change in %

Sales                           165000              150000             (15000)              9%

In horizontal analysis We will compare current year sales with the last year sales  and change in % will be divided by the last year sales.