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

B)
Net sales revenue Prior $515,000
Current 607,700
Increase 92,700/515,000 = 18.00%

The Nichols Corporation Data for the Current Year