The following items were taken from the financial statements of Ritz Inc., over a 4-year period:
Required: Using horizontal analysis and 2011 as the base year, compute the trend percentages for net sales, cost of goods sold, and gross profit. Explain whether the trends are favorable or unfavorable for each item.

Question

The following items were taken from the financial statements of Ritz Inc., over a 4-year period:
  Required: Using horizontal analysis and 2011 as the base year, compute the trend percentages for net sales, cost of goods sold, and gross profit. Explain whether the trends are favorable or unfavorable for each item.

Quizplus · Accepted Answer

The Answer of The following items were taken from the financial statements of Ritz Inc., over a 4-year period:
  Required: Using horizontal analysis and 2011 as the base year, compute the trend percentages for net sales, cost of goods sold, and gross profit. Explain whether the trends are favorable or unfavorable for each item.

The Following Items Were Taken from the Financial Statements of Ritz