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Common size and trend percents for Rustynail Company s sales,cost of goods sold,and expenses follow. Common...

Common size and trend percents for Rustynail Company s sales,cost of goods sold,and expenses follow. Common size percents. 2017 sales 100 % 2016 sales 100 %,2015 sales 100 %. Cost of goods sold 2017. 63.1 . 2016 60.9. 2015. 57.4. Total expenses. 2017 , 14.3 , 2016. 13.8. 2015. 14.1
Trend percents. 2017.              2016           2015

           
sales.                   104.5%           103.3 %     100

cost of goods sold 114.9.        109.6.       100

total expenses.         106.1.        101.1.      100

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Expert Solution

The following are the calculations of the Sales, Costs of Goods Sold and Total Expenses based on the trend percentage and the data of 2015:
Note: Assume 2015 sale $100 because auctul sale 2015 is missing
2016 Sales = $100 x 103.3% = $103.3
2016 Cost of goods sold = $57.4x 109.6% = $62.9104
2016 Total expenses = $14.1x 101.1% = $14.2551
2017 Sales = $100 x 104.4% = $104.4
2017 Cost of goods sold = $57.4x 114.9% = $65.9526
2017 Total expenses = $14.1 x 106.1% = $14.9601
Net Income for the following years are as follows:
2017 2016 2015
Sales        104.400        103.300     100.000
Cost of goods sold          65.953          62.910       57.400
Total expenses          14.960          14.255       14.100
Net income          23.487          26.135       28.500

ekkarill92 answered 1 year ago
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