Exercise 173 Computation and analysis of trend percents P1 w

Exercise 17-3 Computation and analysis of trend percents P1 whole numbers). State whether the situation as revealed by the trends appears able for each account. pute trend percents for the following accounts, using 2013 as the base year (round the percents to to be favorable or unfavor- 2017 2016 2015 2014 2013 Sales $282,880 $270,800 $252,600 $234,560 $150,000 128,200 122,080 115,280 106,440 67.000 18,100 17,300 6,400 15,200 9,000

Solution

Percent = (Current Year Amount / Base Year Amount) * 100

Example

Trend of sale in 2014 = (2014 amount / 2013 Amount) * 100

= (234,560 / 150,000) * 100

= 156%

The Sales groth rate is highest in 2015 and after that company sales are increasing every year but slowly.

Company COGS has increased maximum in 2015 and increasing after that.

It must be noted that company sales has increased 89% of the base figure but COGS has increased by 91% which is bad, so company needs to control its COGS.

Company Accounts receivable has increased two fold, company needs to keep a check on it.

	2017	2016	2015	2014	2013
Sales	282,880	270,800	252,600	234,560	150,000
Trend	189%	181%	168%	156%	100%
	2017	2016	2015	2014	2013
Cost of Goods Sold	128,200	122,080	115,280	106,440	67,000
Trend	191%	182%	172%	159%	100%
	2017	2016	2015	2014	2013
Accounts Receivable	18,100	17,300	16,400	15,200	9,000
Trend	201%	192%	182%	169%	100%