Piper, Incorporated reports cash of $260,000 in Year 1 and $210,000 in Year 2. Using horizontal analysis, what is the percentage increase or decrease in cash?Multiple Choice(19.2%)19.2%(23.8%)23.8%
Question
Piper, Incorporated reports cash of 210,000 in Year 2. Using horizontal analysis, what is the percentage increase or decrease in cash?Multiple Choice(19.2%)19.2%(23.8%)23.8%
Solution
To calculate the percentage change in cash using horizontal analysis, you need to follow these steps:
-
Subtract the Year 2 cash amount from the Year 1 cash amount. This will give you the change in cash. In this case, 260,000 (Year 1) = -$50,000.
-
Next, divide the change in cash by the Year 1 cash amount. This will give you the proportion of change. In this case, -260,000 = -0.1923.
-
To convert this proportion to a percentage, multiply by 100. In this case, -0.1923 * 100 = -19.23%.
So, the percentage decrease in cash from Year 1 to Year 2 is 19.23%. The correct answer is (19.2%)19.2%.
Similar Questions
Kentwood Corporation reports net sales of $880,000 in Year 1 and $720,000 in Year 2. Using horizontal analysis, what is the percentage increase or decrease in sales?Multiple Choice18.2%(18.2%)22.2%(22.2%)
Needle Company reports accounts receivable of $100,000 in 2023 and $250,000 in 2024. Using horizontal analysis, what would be the percentage increase or decrease in accounts receivable?Multiple Choice60% decrease150% decrease150% increase60% increase
Which of the following is the denominator in the formula used to calculate the percentage increase or decrease of an item in horizontal analysis?Multiple ChoicePrior-year amount – Current-year amountPrior-year amountCurrent-year amountCurrent-year amount – Prior-year amount
American Corporation has the following financial information. Year 1 Year 2Cash $ 202.95 $ 245.90 A/R 398.02 485.34 Inventory 785.12 648.54 If Year 1 is the base year, what is the percentage increase/decrease of each current asset amount?
You've been provided with the following information about a businessComplete a VERTICAL analysis for the "Cash" account for the current year. Round the percentage to one decimal place.Note: Do not enter the "%" symbol when entering your answer. For example if your answer is "5.1%", only enter "5.1". If your answer is negative - remember to include the minus.Balance sheet Current year Prior yearCurrent Assets Cash 14,250 16,700Accounts Receivable 14,000 3,500Inventory 6,000 2,500Prepaid Expenses 650 1,500Non-current assetsProperty Plant Equipment 192,500 193,500Land 210,000 210,000TOTAL ASSETS 437,400 427,700Current liabilitiesAccounts Payable 11,700 4,200Unearned Revenue 3,500 2,000Wages Payable 3,500 2,500Non-current liabilitiesBank Loan 118,000 122,500TOTAL LIABILITIES 136,700 131,200NET ASSETS 300,700 296,500Equity Share Capital 255,000 250,000Retained Earnings 45,700 46,500TOTAL EQUITY 300,700 296,500
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.