Grogan Inc. Grogan Inc. had the following information available from its 2011 and 2012 financial statements:
Refer to the Grogan Inc. information above. Performing a horizontal analysis on Grogan's total assets shows that they have:

Question

Grogan Inc. Grogan Inc. had the following information available from its 2011 and 2012 financial statements:
 Refer to the Grogan Inc. information above. Performing a horizontal analysis on Grogan's total assets shows that they have:

Quizplus · Accepted Answer

To perform horizontal analysis of total assets, we need to compare the change in the total assets from 2011 to 2012. 
Total assets in 2012 = $2,635,000 
Total assets in 2011 = $1,415,000 
Change in total assets = ($2,635,000 - $1,415,000) = $1,220,000 
% Change in total assets = (Change in total assets / Total assets in 2011) x 100% 
% Change in total assets = ($1,220,000 / $1,415,000) x 100% = 86.07% 
Therefore, the correct answer is C, which indicates that the total assets have increased by 86.07%.