Atlantis,Inc.reported the following data:

The horizontal analysis shows that cost of goods sold has ________.(Round your answer to two decimal places. )
A)increased by 28.63%
B)decreased by 28.63%
C)increased by 55.91%
D)decreased by 55.91%

Question

Atlantis,Inc.reported the following data:

The horizontal analysis shows that cost of goods sold has ________.(Round your answer to two decimal places. )
A)increased by 28.63% 
B)decreased by 28.63% 
C)increased by 55.91% 
D)decreased by 55.91%

Quizplus · Accepted Answer

The answer can be calculated using the horizontal analysis formula: (Current year amount - Base year amount) / Base year amount * 100. 
For cost of goods sold, the calculation is as follows: 
(22,740 - 14,560) / 14,560 * 100 = 55.91% increase. Therefore, the correct answer is C, which indicates that cost of goods sold has increased by 55.91%.

Atlantis,Inc.reported the Following Data