Horizontal analysis (Learning Objective 2) 10–15 min.

Wolfe, Inc., had net sales of $212,000 and cost of goods sold of $128,000 in 2012, net sales of $263,000 and cost of goods sold of $161,000 in 2013, and net sales of

$325,000 and cost of goods sold of $200,000 in 2014. Round answers to the nearest tenth of a percent.

1. Find the percentage of increase in net sales from 2012 to 2013 and from 2013 to 2014.

2. Find the percentage of increase in gross profit from 2012 to 2013 and from 2013 to 2014.

AppendixLO1