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This unaudited financial information for Bond Company is presented below. Bond Company Income Statement for the Years Ended December 31, 20X1 December 31, 20X2 Gross sales $78,400,000 $82,000,860 Less Returns and allowances 2,500,000 2,604,500 Net sales 75,900,000 79,396,360 Cost of goods sold 45,300,000 50,436,360 Gross profit 30,600,000 28,960,000 Selling and administrative 18,400,000 19,200,000 Income from operations 12,200,000 9,760,000 Interest expense 1,900,000 1,800,000 Net income before taxes 10,300,000 7,960,000 Income taxes 4,982,000 3,580,700 Net income 5,318,000 4,379,300 Accounts Receivable 26,000,275 50,672,000 Inventory 56,000,000 58,000,000 Perform a horizontal analysis of net sales and accounts receivable. Express your answer as a percentage to two decimal places.

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anthougo

The performance of the horizontal analysis of net sales and accounts receivable for Bond Company shows the following results:

Net sales increased in 20x2 to 104.61% while the Accounts Receivable increased to 194.89%.

What is horizontal analysis?

Horizontal analysis or trend analysis of a financial statement is a comparison of the financial statement items to show their year-on-year performances and growth patterns over time.

Data and Calculations:

Bond Company Income Statement for the Years Ended

                                            December 31, 20X1     December 31, 20X2

Gross sales                                   $78,400,000             $82,000,860

Less Returns and allowances         2,500,000                  2,604,500

Net sales                                        75,900,000                79,396,360

Cost of goods sold                        45,300,000               50,436,360

Gross profit                                    30,600,000               28,960,000

Selling and administrative             18,400,000                19,200,000

Income from operations                12,200,000                 9,760,000

Interest expense                              1,900,000                  1,800,000

Net income before taxes              10,300,000                  7,960,000

Income taxes                                  4,982,000                   3,580,700

Net income                                      5,318,000                   4,379,300

Accounts Receivable                  26,000,275                 50,672,000

Inventory                                     56,000,000                58,000,000

                         December 31, 20X1     December 31, 20X2  Horizontal

                                                                                                    Analysis

Net sales                     75,900,000                79,396,360       104.61% ($79,396,360/$75,900,000 x 100)

Accounts receivable  26,000,275                 50,672,000       194.89% ($50,672,000/$26,000,275 x 100)

Thus, the performance of the horizontal analysis of net sales and accounts receivable for Bond Company shows that Net sales increased in 20x2 to 104.61% while the Accounts Receivable increased to 194.89%.

Learn more about horizontal analysis at https://brainly.com/question/25806750

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