### Snelling Company Revenue AnalysisSnelling Company operates in two regional segments: North and South. The annual revenue information, derived from the accounting system’s invoice data, is presented below.#### Revenue Data:| Segment | Current Year | Prior Year ||---------|--------------|------------|| North | $75,000 | $100,000 || South | $260,000 | $220,000 || **Total revenues** | **$335,000** | **$320,000** |### Task:Using horizontal analysis, determine the percentage change in revenues for the South region. Round the answer to one decimal place.#### Options:a. (18.2)%b. 84.6%c. 15.4%d. 18.2%#### Explanation of the Graphs/Diagrams:There are no graphs or diagrams in the provided data. The information is presented in a tabular format, showing the revenue for the North and South regions for the current and prior year, along with the total revenues.### Solution:Horizontal analysis involves comparing financial data from different periods to identify trends and percentage changes.To find the percentage change in revenues for the South region:1. Calculate the change in revenue for the South region: \[ \text{Change in Revenue} = \text{Current Year Revenue} - \text{Prior Year Revenue} = \$260,000 - \$220,000 = \$40,000 \]2. Calculate the percentage change: \[ \text{Percentage Change} = \left(\frac{\text{Change in Revenue}}{\text{Prior Year Revenue}}\right) \times 100 = \left(\frac{\$40,000}{\$220,000}\right) \times 100 \approx 18.2\% \]So, the correct answer is:d. 18.2%

Horizontal analysis is one of the methods of analyzing company financials by calculating the change…

Snelling Company does business in two regional segments: North and South. The following annual revenue information was determined from the accounting system's invoice data: Segment Current Year Prior Year North $ 75,000 $100,000 South 260,000 220,000 Total revenues $335,000 $320,000 Using horizontal analysis, determine the percentage change in revenues for the South region. Round to one decimal place. Oa. (18.2)% Ob. 84.6% Oc. 15.4% Od. 18.2%

Snelling Company does business in two regional segments: North and South. The following annual revenue information was determined from the accounting system's invoice data: Segment Current Year Prior Year North $ 75,000 $100,000 South 260,000 220,000 Total revenues $335,000 $320,000 Using horizontal analysis, determine the percentage change in revenues for the South region. Round to one decimal place. Oa. (18.2)% Ob. 84.6% Oc. 15.4% Od. 18.2%

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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