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

Question

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

Quizplus · Accepted Answer

To calculate the horizontal analysis for sales, we need to compare the current year's sales with the previous year's sales.

Amount change = Current year's sales - Previous year's sales
= $164,000 - $149,500
= $14,500

Percent change = (Amount change / Previous year's sales) x 100
= (14,500 / 149,500) x 100
= 9.7%

Therefore, the answer is D) $(15,500), (9.4%). There is an increase in sales of $15,500, which is a 9.4% increase from the previous year.

Richardson Company Has a Condensed Income Statement as Shown