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21-12-2020
Business

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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?

a. 18.2%
b. (18.2%)
c. 22.2%
d. (22.2%)

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21-12-2020

Answer:

Percentage decrease in sales by 18.2%

Since (1-18.2÷100)×880000= 720000

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