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%)

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Business

Patterson

3 December, 13:42

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%)

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Luciana Carpenter · Answer 1

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.