McNally Industries has a condensed income statement as shown.
Using horizontal analysis, calculate the amount and percent change for sales. Round percentages to one decimal place.

Question

McNally Industries has a condensed income statement as shown.  
 Using horizontal analysis, calculate the amount and percent change for sales. Round percentages to one decimal place.

Quizplus · Accepted Answer

Change in sales = Sales in Year 2 - Sales in Year 1 = $198,000 - $165,500? = $32,500
Percent change in sales = (Sales in Year 2 - Sales in Year 1) / Sales in Year 1
= ($198,000 - $165,500?) / $165,500? = 19.6%

McNally Industries Has a Condensed Income Statement as Shown