A.2 Starkey Company's sales, current assets, and current liabilities (all in thousands of dollars) have reported as follow over the last five years (Year 5 is the most recent year): Sales Current assets: Cash Accounts receivable Inventory Total current assets Current liabilities Required: Year 5 $5,625 $ Year 4 $5,400 560 896 64 $ 72 $ Year 3 Year 2 $4,950 $4,725 496 880 84 432 816 $ 88 416 864 Year 1 $ 4,500 $ 400 800 $1,520 $1,448 $1,332 $1,368 $ 1,280 $ 390 $ 318 $ 324 $330 $ 300 80 1. Express all of the asset, liability, and sales data in trend percentages. (Show percentages for each item.) Use Year 1 as the base year, and carry computations to one decimal place. 2. Comment the results of your analysis.
A.2 Starkey Company's sales, current assets, and current liabilities (all in thousands of dollars) have reported as follow over the last five years (Year 5 is the most recent year): Sales Current assets: Cash Accounts receivable Inventory Total current assets Current liabilities Required: Year 5 $5,625 $ Year 4 $5,400 560 896 64 $ 72 $ Year 3 Year 2 $4,950 $4,725 496 880 84 432 816 $ 88 416 864 Year 1 $ 4,500 $ 400 800 $1,520 $1,448 $1,332 $1,368 $ 1,280 $ 390 $ 318 $ 324 $330 $ 300 80 1. Express all of the asset, liability, and sales data in trend percentages. (Show percentages for each item.) Use Year 1 as the base year, and carry computations to one decimal place. 2. Comment the results of your analysis.
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 19P
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![A.2 Starkey Company's sales, current assets, and current liabilities (all in
thousands of dollars) have reported as follow over the last five years (Year 5
is the most recent year):
Sales
Current assets:
Cash
Accounts receivable
Inventory
Total current assets
Current liabilities
Required:
Year 5
$5,625
$
Year 4
$5,400
64 $
560
896
Year 3 Year 2
$4,950 $4,725
72 $ 84
496
880
$
88
416
864
Year 1
$ 4,500
80
432
400
816
800
$ 1,332 $1,368 $ 1,280
300
$1,520
$1,448
$ 390 $ 318 $ 324 $ 330 $
1. Express all of the asset, liability, and sales data in trend percentages.
(Show percentages for each item.) Use Year 1 as the base year, and
carry computations to one decimal place.
2. Comment the results of your analysis.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5aacb3b7-8a8f-4dd7-a64e-5491f6ec37cb%2F67edeb1f-2dd0-4f87-8a09-63a41b40bdf0%2F1pyr6dv_processed.png&w=3840&q=75)
Transcribed Image Text:A.2 Starkey Company's sales, current assets, and current liabilities (all in
thousands of dollars) have reported as follow over the last five years (Year 5
is the most recent year):
Sales
Current assets:
Cash
Accounts receivable
Inventory
Total current assets
Current liabilities
Required:
Year 5
$5,625
$
Year 4
$5,400
64 $
560
896
Year 3 Year 2
$4,950 $4,725
72 $ 84
496
880
$
88
416
864
Year 1
$ 4,500
80
432
400
816
800
$ 1,332 $1,368 $ 1,280
300
$1,520
$1,448
$ 390 $ 318 $ 324 $ 330 $
1. Express all of the asset, liability, and sales data in trend percentages.
(Show percentages for each item.) Use Year 1 as the base year, and
carry computations to one decimal place.
2. Comment the results of your analysis.
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