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 have been reported as follows over the last five years (Year 5 is the most recent year):

	Year 1			Year 2			Year 3			Year 4			Year 5
Sales	$	4,515,380		$	4,822,420		$	5,076,200		$	5,452,070		$	5,729,200
Cash	$	86,992		$	95,104		$	103,580		$	80,327		$	75,778
Accounts receivable, net		417,549			422,756			446,624			501,647			562,728
Inventory		809,884			874,064			831,041			886,589			905,481
Total current assets	$	1,314,425		$	1,391,924		$	1,381,245		$	1,468,563		$	1,543,987
Current liabilities	$	311,618		$	339,904		$	336,411		$	337,589		$	401,849

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).)

	Year 1 Year 2 Year 3 Year 4 Year 5 Sales % % % % % Current assets: Cash Accounts receivable Inventory Total current assets Current liabilities

Answer 1

• All working forms part of the answer

	Year 1		Year 2		Year 3		Year 4		Year 5
	[A]	[A/A]	[B]	[B/A]	[C]	[C/A]	[D]	[D/A]	[E]	[E/A]
Sales	$                     45,15,380.00	100.0%	$                         48,22,420.00	106.8%	$                   50,76,200.00	112.4%	$                  54,52,070.00	120.7%	$                          57,29,200.00	126.9%
Cash	$                           86,992.00	100.0%	$                               95,104.00	109.3%	$                      1,03,580.00	119.1%	$                        80,327.00	92.3%	$                                75,778.00	87.1%
Accounts receivable, net	$                       4,17,549.00	100.0%	$                           4,22,756.00	101.2%	$                      4,46,624.00	107.0%	$                    5,01,647.00	120.1%	$                            5,62,728.00	134.8%
Inventory	$                       8,09,884.00	100.0%	$                           8,74,064.00	107.9%	$                      8,31,041.00	102.6%	$                    8,86,589.00	109.5%	$                            9,05,481.00	111.8%
Total current assets	$                     13,14,425.00	100.0%	$                         13,91,924.00	105.9%	$                   13,81,245.00	105.1%	$                  14,68,563.00	111.7%	$                          15,43,987.00	117.5%
Current liabilities	$                       3,11,618.00	100.0%	$                           3,39,904.00	109.1%	$                      3,36,411.00	108.0%	$                    3,37,589.00	108.3%	$                            4,01,849.00	129.0%