The Stemple Corporation data for the current year: What would a horizontal analysis report with respect to net sales revenue?

Question

The Stemple Corporation data for the current year:  What would a horizontal analysis report with respect to net sales revenue?

Quizplus · Accepted Answer

A horizontal analysis compares financial data from one period to the next to determine the increase or decrease in those numbers. Therefore, the best answer would be an increase in net sales revenue, which is option C. The other options do not relate to net sales revenue, and cost of goods sold as a percentage of net sales revenue and sales returns would be better suited for a vertical analysis. The accounts receivable turnover ratio is also not related to net sales revenue.

The Stemple Corporation Data for the Current Year: What