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Question - The following items were taken from the financial statements of Ritz Inc., over a four-year period:
Item Yr 4 Yr 3 Yr 2 Yr 1Net Sales $800,000 $700,000 $550,000 $500,000Cost of Goods Sold 560,000 500,000 420,000 400,000Gross Margin $240,000 $200,000 $130,000 $100,000
Required: Using horizontal analysis and Yr 1 as the base year, compute the trend percentages for net sales, cost of goods sold, and gross profit.
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