Use the following information to do a horizontal analysis of Marcus Corporation's income statement for the current year and prior year What is the percentage change in cost of goods sold?
A)-22.00%
B)27.00%
C)127.00%
D)33.59%

Question

Use the following information to do a horizontal analysis of Marcus Corporation's income statement for the current year and prior year  What is the percentage change in cost of goods sold?
A)-22.00% 
B)27.00% 
C)127.00% 
D)33.59%

Quizplus · Accepted Answer

To calculate the percentage change in cost of goods sold, we need to compare the cost of goods sold for the current year and the prior year. Based on the income statement provided, the cost of goods sold for the current year is $462,959,000 and for the prior year is $364,049,000.

Using the formula: [(Current Year Amount - Prior Year Amount) / Prior Year Amount] x 100, we can calculate the percentage change:

[($462,959,000 - $364,049,000) / $364,049,000] x 100 = 27%

Therefore, the percentage change in cost of goods sold is 27%, or choice B.

Use the Following Information to Do a Horizontal Analysis of Marcus