### Horizontal Analysis of Needle Company's Accounts ReceivableNeedle Company reports accounts receivable of $100,000 in 2023 and $250,000 in 2024. Using horizontal analysis, the objective is to determine the percentage increase or decrease in accounts receivable over this period.### QuestionWhat would be the percentage increase or decrease in accounts receivable from 2023 to 2024?### Multiple Choice Options- 60% increase- 60% decrease- 150% increase- 150% decrease### Detailed ExplanationTo determine the percentage change in accounts receivable, you can follow these steps:1. **Calculate the Increase Amount**: The difference between the 2024 and 2023 accounts receivable amounts is: \[ \text{Increase Amount} = \$250,000 - \$100,000 = \$150,000 \]2. **Calculate the Percentage Increase**: The percentage increase is found by dividing the increase amount by the original amount (2023) and then multiplying by 100 to get the percentage: \[ \text{Percentage Increase} = \left(\frac{\$150,000}{\$100,000}\right) \times 100 = 150\% \]### AnswerThe correct answer is a **150% increase** in accounts receivable from 2023 to 2024.

Ans. Horizontal analysis means year to year change i.e. increase or decrease.…

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 Choice 60% increase 60% decrease 150% increase 150% decrease

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 Choice 60% increase 60% decrease 150% increase 150% decrease

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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