The McCumber Corporation data for the current year:

With respect to selling/general expenses,what would a horizontal analysis report?
A)The current ratio is 0.92.
B)There was a 4.47% increase from prior to current year.
C)There was a 4.28% decrease from prior to current year.
D)Selling/general expenses are 7.74% of net sales revenue.

Question

The McCumber Corporation data for the current year:

With respect to selling/general expenses,what would a horizontal analysis report?
A)The current ratio is 0.92. 
B)There was a 4.47% increase from prior to current year. 
C)There was a 4.28% decrease from prior to current year. 
D)Selling/general expenses are 7.74% of net sales revenue.

Quizplus · Accepted Answer

C)
Selling and general expense - Prior $50,000
Current 47,860
Decrease 2,140/50,000 = 4.28%

The McCumber Corporation Data for the Current Year