Trend Analysis - 2. Divide the change by the earlier year's...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Trend Analysis Trend analysis  calculates the percentage change for one account over a period of time of two years  or more.  Percentage change To calculate the percentage change between two periods: 1. Calculate the amount of the increase/(decrease) for the period by subtracting the  earlier year from the later year. If the difference is negative, the change is a decrease and if  the difference is positive, it is an increase.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 2. Divide the change by the earlier year's balance. The result is the percentage change. Calculation of Percentage Change 20X1 20X0 Increase/(Decrease) Percent Change Cash $ 6,950 $ 6,330 $ 620 9.8% Accounts Receivable, net 18,567 19,330 (763) (3.9%) Sales 129,000 103,000 26,000 25.2% Rent Expense 10,000 10,000 N/M Net Income (Loss) 8,130 (1,400) 9,530 N/M...
View Full Document

This note was uploaded on 11/15/2011 for the course ACCT 2310 taught by Professor Staff during the Spring '09 term at Texas State.

Ask a homework question - tutors are online