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

A)
Net sales revenue Prior $515,000
Current 618,000
Increase 103,000/515,000 = 20.00%

The McCumber Corporation Data for the Current Year