Richardson Company has a condensed income statement as shown. $\begin{array}{|l|r|r|}
\hline & \text { Year 2 } & {\text { Year } 1} \
\hline \text { Sales } & \$ 150,000 & \$ 165,500 \
\hline \text { Total operating expenses } & 133,000 & 147,500 \
\hline \text { Net income } & 17,000 & 18,000\
\hline
\end{array}$
Using horizontal analysis,calculate the amount and percent change for sales.Round to one decimal place.
A)$17,000,11.3%
B)$15,500,10.3%
C)$18,000,10.9%
D)$15,500,9.4%

Question

Richardson Company has a condensed income statement as shown. $\begin{array}{|l|r|r|}
\hline & \text { Year 2 } & {\text { Year } 1} \
\hline \text { Sales } & \$ 150,000 & \$ 165,500 \
\hline \text { Total operating expenses } & 133,000 & 147,500 \
\hline \text { Net income } & 17,000 & 18,000\
\hline
\end{array}$ 
Using horizontal analysis,calculate the amount and percent change for sales.Round to one decimal place.
A)$17,000,11.3%
B)$15,500,10.3%
C)$18,000,10.9%
D)$15,500,9.4%

Quizplus · Accepted Answer

The amount change in sales is $15,500 ($165,500 - $150,000). The percent change is calculated as ($15,500 / $165,500) * 100 = 9.4%.

Richardson Company Has a Condensed Income Statement as Shown Using Horizontal Analysis,calculate the Amount and Percent Change for Sales