Question

Complete the horizontal analysis below:

Year 2                                     Year 1                                     Amount Change                   Percentage Change

$88, 338                                $92,147                                                 ???                                          ???

A. ($3,809), 4.1%

B. $3,809, 4.1%

C. $180,485, 51.1%

D. $8,300, 15%

E. None of these

Answer 1

Amount Change? And Percentage?

Answer: ($3,809), 4.1%

Working,

Formula for calculating Amount of change is as follows

Amount of change          = Year 2 value – Year 1 value

                                                = $88,338 – $92,147

                                                = -$3,809

                                                = ($3,809)

Percentage of change: formula for calculating percentage of change is as follows

Percentage of change = (Year 2 value – Year 1 value) ÷ year 1 value

                                                = ($88,338 – $92,147) ÷ $92,147

                                                = 0.04133

                                                = 4.1%

Where,

Year 1 value: $92,147 (provided in the question)

Year 2 value: $88,338 (provided in the question)