Question

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 $ 4,519,650 $ 4,743,420 $ 4,986,130 $ 5,404,630 $ 5,644,150 Cash $ 83,903 $ 94,914 $ 91,997 $ 79,973 $ 72,599 Accounts receivable, net 403,668 425,131 432,904 506,860 563,814 Inventory 818,643 875,531 829,934 890,369 897,953 Total current assets $ 1,306,214 $ 1,395,576 $ 1,354,835 $ 1,477,202 $ 1,534,366 Current liabilities $ 317,903 $ 330,463 $ 343,668 $ 328,804 $ 392,334 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

Formula for calculating trend percentages:

(Current year value/base year value)*100

Here year1 is taken as base year. So the values of year1 are treated as base year values.

By using the above mentioned formula we can calculate trend percentages. Whiich is explained in detail below.