Hansen Inc

question 5

Multiple Choice

Hansen Inc. has the following information available for 2011 and 2012: Which of the following statements is true regarding horizontal analysis with respect to Hansen?

• A) It would show net income has decreased by 20 percent.
• B) It would show net income has decreased by 16.7 percent.
• C) There is not enough information available to perform horizontal analysis.
• D) Horizontal analysis can not be performed using net income.

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Definitions:

Yield of The Stock

The income return on an investment, such as dividends received from holding a stock, expressed usually as a percentage of the stock's current market price.

Limit Order

Instructions to the broker that name a specific price for a share of stock.

Percent Change

The rate at which a quantity increases or decreases compared to its original value, expressed as a percentage.

Sales in 100s

Typically refers to a reporting method in which sales figures are rounded and represented in hundreds.