Trend percentages

# Trend percentages - \$12,202 \$12,102 \$11,973 \$11,743...

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Trend percentages To calculate the change over a longer period of time—for example, to develop a sales trend—follow  the steps below: 1. Select the base year. 2. For each line item, divide the amount in each nonbase year by the amount in the  base year and multiply by 100. 3. In the following example, 20W7 is the base year, so its percentages (see bottom half  of the following table) are all 100.0. The percentages in the other years were calculated by  dividing each amount in a particular year by the corresponding amount in the base year and  multiply by 100. Calculation of Trend Percentages 20X1 20X0 20W9 20W8 20W7 Historical Data Inventory \$ 12,309

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Unformatted text preview: \$12,202 \$12,102 \$11,973 \$11,743 Property & equipment 74,422 78,938 64,203 65,239 68,450 Current liabilities 27,945 30,347 27,670 28,259 26,737 Sales 129,000 97,000 95,000 87,000 81,000 Cost of goods sold 70,950 59,740 48,100 47,200 45,500 Operating expenses 42,600 38,055 32,990 29,690 27,050 Net income (loss) 8,130 (1,400) 7,869 5,093 3,812 20X1 20X0 20W9 20W8 20W7 Trend Percentages Inventory 104.8 103.9 103.1 102.0 100.0 Property & equipment 108.7 115.3 93.8 95.3 100.0 Current liabilities 104.5 113.5 103.5 105.7 100.0 Sales 159.3 119.8 117.3 107.4 100.0 Cost of goods sold 155.9 131.3 105.7 103.7 100.0 Operating expenses 157.5 140.7 122.0 109.8 100.0 Net income (loss) 213.3 (36.7) 206.4 133.6 100.0...
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## 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.

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Trend percentages - \$12,202 \$12,102 \$11,973 \$11,743...

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