Essay
Rick's net sales decreased from $90,000 in year 1 to $45,000 in year 2 and its cost of goods sold decreased from $30,000 in year 1 to $20,000 in year 2. Using vertical analysis based on sales , what percentages would show for the decreases in cost of goods sold for the two periods (rounded to nearest tenth of a percent)? Using horizontal analysis, what would be the percentage change for sales and cost of goods sold?
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