Using horizontal analysis, what is the percentage increase in sales from $200,000 in 2009 to $250,000 in 2010?

To calculate the percentage increase in sales using horizontal analysis, you first determine the change in sales from the previous period to the current period. In this case, sales increased from $200,000 in 2009 to $250,000 in 2010.

The change in sales can be calculated as follows:

Change in Sales = Sales in 2010 - Sales in 2009

Change in Sales = $250,000 - $200,000

Change in Sales = $50,000

Next, to find the percentage increase, you divide the change in sales by the sales from the previous period, and then multiply by 100 to convert it to a percentage:

Percentage Increase = (Change in Sales / Sales in 2009) × 100

Percentage Increase = ($50,000 / $200,000) × 100

Percentage Increase = 0.25 × 100

Percentage Increase = 25%

This calculation indicates that there was a 25% increase in sales from 2009 to 2010, which aligns with the selected answer. Understanding this method of calculation is crucial in assessing financial performance across periods, as it allows for a comparative analysis of growth trends.