Rick's Net Sales Decreased from $90,000 in Year 1 to $45,000

question 104

Essay

Rick's net sales decreased from $90,000 in year 1 to $45,000 in year 2 and its cost of goods sold decreased from $30,000 in year 1 to $20,000 in year 2. Using vertical analysis based on sales , what percentages would show for the decreases in cost of goods sold for the two periods (rounded to nearest tenth of a percent)? Using horizontal analysis, what would be the percentage change for sales and cost of goods sold?

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Definitions:

Alcohol

The chemical resulting from fermentation or distillation of various kinds of vegetable matter.

Dizygotic Twins

Also known as fraternal twins, these are siblings born at the same time but developed from two separate eggs fertilized by two different sperm cells.

Zygotes

The initial cell formed when a new organism is produced by sexual reproduction, created when the sperm fertilizes the egg, containing genetic material from both parents.

Fertilized

The state or process in which a sperm cell unites with an egg cell, leading to the formation of a zygote and the initiation of pregnancy.