Question

Suppose that in one year the Consulting Corporation had net sales of $750,000 and in the next year had net sales of $925,000. What would the percentage change be using horizontal analysis?

Answer 1

Answer:

23.33%

Explanation:

Data provided in the question

Net sales in one year = $750,000

And, the next year net sales = $925,000

So by considering the above information, the  percentage change in using horizontal analysis is

= Difference in amount ÷ Net sales in one year

= ($925,000 - $750,000) ÷ ($750,000)

= ($175,000) ÷ ($750,000)

= 23.33%