The Ranger Corporation data for the current year and prior year is as follows: What would a horizontal analysis report with respect to net sales revenue show?
A)Cost of goods sold is 80.70% of net sales revenue
B)A sales return of 9.14%
C)An increase of 19.20% in net sales revenue
D)Accounts receivable turnover of 8.08 times

Question

The Ranger Corporation data for the current year and prior year is as follows:  What would a horizontal analysis report with respect to net sales revenue show?
A)Cost of goods sold is 80.70% of net sales revenue 
B)A sales return of 9.14% 
C)An increase of 19.20% in net sales revenue 
D)Accounts receivable turnover of 8.08 times

Quizplus · Accepted Answer

A horizontal analysis compares data from two or more periods to identify changes and trends. In this case, the report would show the percentage change in net sales revenue between the current year and prior year. Option A is related to cost of goods sold and not net sales revenue. Option B is related to sales returns, which is not the same as net sales revenue. Option D is related to accounts receivable turnover, which is not the same as net sales revenue. Therefore, the only correct option is C, which shows an increase of 19.20% in net sales revenue.

The Ranger Corporation Data for the Current Year and Prior