A user has decided to perform a horizontal analysis of Nanton Company.The year 2012 is used as the base year.Sales in 2012 were $4,250,000.Sales in 2013 and 2014 were $5,788,000 and $6,125,000, respectively.The trend data amount for 2014 for sales would be closest to?
A)106%
B)113%
C)136%
D)144%

Question

Quizplus · Accepted Answer

The trend data amount for 2014 for sales is calculated by dividing sales in 2014 by sales in the base year (2012) and multiplying by 100%. This gives us ($6,125,000/$4,250,000) x 100% = 144%. Therefore, the best choice is D, 144%.

A User Has Decided to Perform a Horizontal Analysis of Nanton