The Nichols Corporation data for the current year:

What would a horizontal analysis report with respect to selling/general expenses?
A)There was a 5.62% decrease from prior to current year.
B)There was a 5.95% increase from prior to current year.
C)The current ratio is 1.06.
D)Selling/general expenses are 8.08% of net sales revenue.

Question

The Nichols Corporation data for the current year:

What would a horizontal analysis report with respect to selling/general expenses?
A)There was a 5.62% decrease from prior to current year. 
B)There was a 5.95% increase from prior to current year. 
C)The current ratio is 1.06. 
D)Selling/general expenses are 8.08% of net sales revenue.

Quizplus · Accepted Answer

A)
Selling and general expense - Prior $52,000
Current 49,080
Decrease 2,920/52,000 = 5.62%

The Nichols Corporation Data for the Current Year