Question

Q. Rotorua Products, Ltd., of New Zealand markets agricultural products for the burgeoning Asian consumer market. The company’s current assets, current liabilities, and sales over the last five years (Year 5 is the most recent year) are as follows:

	Year 1			Year 2			Year 3			Year 4			Year 5
Sales	$	4,552,550		$	4,916,940		$	5,080,520		$	5,495,400		$	5,744,250
Cash	$	91,127		$	103,071		$	93,808		$	88,914		$	77,726
Accounts receivable, net		400,089			424,346			439,101			501,251			561,062
Inventory		814,007			880,523			821,361			887,034			897,719
Total current assets	$	1,305,223		$	1,407,940		$	1,354,270		$	1,477,199		$	1,536,507
Current liabilities	$	302,104		$	330,002		$	340,898		$	337,014		$	398,422

Required:

1. Express all of the asset, liability, and sales data in trend percentages. Use Year 1 as the base year. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)

Answer 1

		Year 1	Year 2	Year 3	Year 4	Year 5
	Sales	100.0%	108.0%	111.6%	120.7%	126.2%
	Current Assets
	Cash	100.0%	113.1%	102.9%	97.6%	85.3%
	Accounts Receivable	100.0%	106.1%	109.8%	125.3%	140.2%
	Inventory	100.0%	108.2%	100.9%	109.0%	110.3%
	Total Current Assets	100.0%	107.9%	103.8%	113.2%	117.7%
	Current Liability	100.0%	109.2%	112.8%	111.6%	131.9%
		Year 1	Year 2	Year 3	Year 4	Year 5
	Sales	4,552,550	4,916,940	5,080,520	5,495,400	5,744,250
	Current Assets
	Cash	91,127	103,071	93,808	88,914	77,726
	Accounts Receivable	400,089	424,346	439,101	501,251	561,062
	Inventory	814,007	880,523	821,361	887,034	897,719
	Total Current Assets	1,305,223	1,407,940	1,354,270	1,477,199	1,536,507
	Current Liability	302,104	330,002	340,898	337,014	398,422