2006 $2,173,321 2007 $2,240,537 2008 $2,154,363 2009 $2,267,750 2010 $2,350,000 Average Historical Change in Sales Using the data for Acme, the historical change in sales is calculated as (new - old)/old. Based on this, the change in sales from 2006 to 2007 is calculated as (2,240,537 - 2,173,321)/2,173,321 = 0.031. Calculate the percentage change in sales for 2007_2008, 2008_2009, and 2009_2010. Round to 4 decimal places. Choose between the following: A. -.03846, .05263, .03627 B. .0385, .0526, .0363 C. -.0385, .0526, .0363
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
Sales for Acme Roadrunner Eradication Inc.
2006 $2,173,321
2007 $2,240,537
2008 $2,154,363
2009 $2,267,750
2010 $2,350,000
Average Historical Change in Sales
Using the data for Acme, the historical change in sales is calculated as (new - old)/old. Based on this, the change in sales from 2006 to 2007 is calculated as (2,240,537 - 2,173,321)/2,173,321 = 0.031.
Calculate the percentage change in sales for 2007_2008, 2008_2009, and 2009_2010. Round to 4 decimal places.
Choose between the following:
A. -.03846, .05263, .03627
B. .0385, .0526, .0363
C. -.0385, .0526, .0363
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