The McCumber Corporation data for the current year: With respect to net sales revenue, what would a horizontal analysis report?
A)There was an increase of 20.00% in net sales revenue.
B)There is a sales return of $10.40.
C)The cost of goods sold is 77.37% of net sales revenue.
D)There is an accounts receivable turnover of 11.17 times.

Question

The McCumber Corporation data for the current year:  With respect to net sales revenue, what would a horizontal analysis report?
A)There was an increase of 20.00% in net sales revenue. 
B)There is a sales return of $10.40. 
C)The cost of goods sold is 77.37% of net sales revenue. 
D)There is an accounts receivable turnover of 11.17 times.

Quizplus · Accepted Answer

Horizontal analysis compares financial data from previous years to the current year. Without data from previous years, it is difficult to determine if the company's net sales revenue is in line with previous performances. However, based on the given information, a horizontal analysis report would state that net sales revenue increased by 20.00% in the current year.

The McCumber Corporation Data for the Current Year: with Respect