Compute trend percents for the above accounts, using 2017 as the base year. For each of the three accounts, state whether the situation as revealed by the trend percents appears to be favorable or unfavorable.Sales$ 666,761$ 432,962$ 344,990$ 249,090$ 180,500Cost of goods sold329,263213,901172,445124,05488,445Accounts receivable32,13825,24223,63214,54712,328 Numerator:Numerator:Trend Percent for Net Sales:12021:2020:2019:2018:2017:Is the trend percent for Net Sales favorable or unfavorable?Numerator:11111Trend Percent for Cost of Goods Sold:1Denominator:1112021:2020:2019:2018:2017:Is the trend percent for Cost of Goods Sold favorable or unfavorable?Denominator:1/Trend Percent for Accounts Receivable:Denominator:1111112021:2020:2019:2018:2017:Is the trend percent for Accounts Receivable favorable or unfavorable?=11=11==11====||===Trend percentTrend percentTrend percent%%%%%%%%%%%

Sales are made on cash basis and credit basis. the amount to be collected from Sales made on credit…

Answered: Compute trend percents for the above…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Compute trend percents for the above accounts, using 2017 as the base year. For each of the three accounts, state whether the situation as revealed by the trend percents appears to be favorable or unfavorable.

Sales	$ 666,761	$ 432,962	$ 344,990	$ 249,090	$ 180,500
Cost of goods sold	329,263	213,901	172,445	124,054	88,445
Accounts receivable	32,138	25,242	23,632	14,547	12,328

Numerator:
Numerator:
Trend Percent for Net Sales:
1
2021:
2020:
2019:
2018:
2017:
Is the trend percent for Net Sales favorable or unfavorable?
Numerator:
1
1
1
1
1
Trend Percent for Cost of Goods Sold:
1
Denominator:
1
1
1
2021:
2020:
2019:
2018:
2017:
Is the trend percent for Cost of Goods Sold favorable or unfavorable?
Denominator:
1
/
Trend Percent for Accounts Receivable:
Denominator:
1
1
1
1
1
1
2021:
2020:
2019:
2018:
2017:
Is the trend percent for Accounts Receivable favorable or unfavorable?
=
11
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11
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=
11
=
=
=
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=
=
Trend percent
Trend percent
Trend percent
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%
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%
%
%
%
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