-Which of the following would result from a horizontal analysis of Robbins Corporation's income statement?
A) Cost of goods sold increased $40,000 or 19.05% during 2017
B) Accounts receivable is 7.78% of total assets for 2017.
C) Gross margin is 40.48% of net sales for 2017.
D) Cost of goods sold is 59.52% of net sales for 2017.

Question

-Which of the following would result from a horizontal analysis of Robbins Corporation's income statement?
A) Cost of goods sold increased $40,000 or 19.05% during 2017 
B) Accounts receivable is 7.78% of total assets for 2017. 
C) Gross margin is 40.48% of net sales for 2017. 
D) Cost of goods sold is 59.52% of net sales for 2017.

Quizplus · Accepted Answer

Cost of goods sold increased $40,000 ($250,000 - $210,000) or 19.05% ($40,000 / $210,000). The remaining responses relate to vertical analysis.

-Which of the Following Would Result from a Horizontal Analysis