May you please interpret and analyse the Trend analysis below in detail. what does the trend analysis tell us about the income statement, the current account and current liabilities, the shareholders equity and the business as a whole. Income Statement 2013-14 2014-15 2012-13 2013-14 2014-15 Increase/(Decrease) % change Increase/(Decrease) % change Sales Cash 200 480 800 280 140% 320 67% Credit 1800 4320 7200 2520 140% 2880 67% Total Sales 2000 4800 8000 2800 140% 3200 67% Cost of Goods Sold 1240 2822 4800 1582 128% 1978 70% Gross Profit 760 1968 3200 1208 159% 1232 63% Operating Expense General, administration and Selling expense 80 450 1000 370 463% 550 122% Depreciation 100 400 660 300 300% 260 65% Interest Expense 60 158 340 98 163% 182 115% Profit before Tax 520 960 1200 440 85% 240 25% Tax @30% 156 288 360 132 85% 72 25% Profit after Tax 364 672 840 308 85% 168 25% Balance Sheet 2013-14 2014-15 2012-13 2013-14 2014-15 Increase/Decrease % Change Increase/Decrease %Change Assets Fixed assets (net of depreciation) 1900 2500 4700 600 32% 2200 88% Current assets Cash and Cash equivalents 40 100 106 60 150% 6 6% Account Receivable 300 1500 2100 1200 400% 600 40% Inventories 320 1500 2250 1180 369% 750 50% Total 2560 5600 9156 3040 119% 3556 64% Equity and Liabilities Equity Share Capital 1200 1600 2000 400 33% 400 25% Reserves and Surplus 364 1036 1876 672 185% 840 81% Long Term Borrowings 736 1236 2500 500 68% 1264 102% Current Liabilities 260 1728 2780 1468 565% 1052 61% Total 2560 5600 9156 3040 119% 3556 64%

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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May you please interpret and analyse the Trend analysis below in detail. what does the trend analysis tell us about the income statement, the current account and current liabilities, the shareholders equity and the business as a whole.

Income Statement	2013-14	2014-15
	2012-13	2013-14	2014-15	Increase/(Decrease)	% change	Increase/(Decrease)	% change
Sales
Cash	200	480	800	280	140%	320	67%
Credit	1800	4320	7200	2520	140%	2880	67%
Total Sales	2000	4800	8000	2800	140%	3200	67%
Cost of Goods Sold	1240	2822	4800	1582	128%	1978	70%
Gross Profit	760	1968	3200	1208	159%	1232	63%
Operating Expense
General, administration and Selling expense	80	450	1000	370	463%	550	122%
Depreciation	100	400	660	300	300%	260	65%
Interest Expense	60	158	340	98	163%	182	115%
Profit before Tax	520	960	1200	440	85%	240	25%
Tax @30%	156	288	360	132	85%	72	25%
Profit after Tax	364	672	840	308	85%	168	25%




Balance Sheet	2013-14	2014-15
	2012-13	2013-14	2014-15	Increase/Decrease	% Change	Increase/Decrease	%Change
Assets
Fixed assets (net of depreciation)	1900	2500	4700	600	32%	2200	88%
Current assets
Cash and Cash equivalents	40	100	106	60	150%	6	6%
Account Receivable	300	1500	2100	1200	400%	600	40%
Inventories	320	1500	2250	1180	369%	750	50%

Total	2560	5600	9156	3040	119%	3556	64%

Equity and Liabilities
Equity Share Capital	1200	1600	2000	400	33%	400	25%
Reserves and Surplus	364	1036	1876	672	185%	840	81%
Long Term Borrowings	736	1236	2500	500	68%	1264	102%
Current Liabilities	260	1728	2780	1468	565%	1052	61%

Total	2560	5600	9156	3040	119%	3556	64%