Brady's Inflation Needle Co.reports accounts receivable of $100,000 in 2017 and $250,000 in 2018.Using horizontal analysis,what would be the percentage increase or decrease in accounts receivable?
A)60% decrease
B)60% increase
C)150% decrease
D)150% increase

Question

Quizplus · Accepted Answer

To calculate the percentage increase in accounts receivable:

[(Current year amount - Base year amount) / Base year amount] x 100%

[(250,000 - 100,000) / 100,000] x 100% = 150% increase