The Goodberry Corporation data for the current year and prior year is as follows: What would a horizontal analysis report with respect to net sales revenue?
A)There is a sales return of $0.11.
B)There was an increase of 17.93% in net sales revenue.
C)The cost of goods sold is 77.37% of net sales revenue.
D)There is an accounts receivable turnover of 10.26 times.

Question

The Goodberry Corporation data for the current year and prior year is as follows:  What would a horizontal analysis report with respect to net sales revenue?
A)There is a sales return of $0.11. 
B)There was an increase of 17.93% in net sales revenue. 
C)The cost of goods sold is 77.37% of net sales revenue. 
D)There is an accounts receivable turnover of 10.26 times.

Quizplus · Accepted Answer

A horizontal analysis compares financial data from one period to another to determine the percentage increase or decrease. Therefore, by analyzing the current year data and the prior year data, we can observe that there was an increase of 17.93% in net sales revenue. None of the other options provided are related to net sales revenue in particular.

The Goodberry Corporation Data for the Current Year and Prior