The Nichols Corporation data for the current year: What would a horizontal analysis report with respect to net sales revenue?
A)There is a sales return of $10.23.
B)There was an increase of 18.00% in net sales revenue.
C)The cost of goods sold is 77.29% of net sales revenue.
D)There is an accounts receivable turnover of 11.26 times.

Question

The Nichols Corporation data for the current year:  What would a horizontal analysis report with respect to net sales revenue?
A)There is a sales return of $10.23. 
B)There was an increase of 18.00% in net sales revenue. 
C)The cost of goods sold is 77.29% of net sales revenue. 
D)There is an accounts receivable turnover of 11.26 times.

Quizplus · Accepted Answer

A horizontal analysis compares financial data from one period to another to determine the percentage difference. Since the question only provides data for the current year, we cannot compare it to any previous years. Therefore, we cannot determine information such as sales returns, cost of goods sold, or accounts receivable turnover. However, we can determine that there was an increase of 18.00% in net sales revenue compared to the previous period/year.

The Nichols Corporation Data for the Current Year: What