{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Trend Analysis

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

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

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.
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

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern