P18-1 Trend analysis and return on common equity [20–30 min] Net sales revenue, profit and ordinary shareholders' equity for Visi Mission Corporation Ltd, a manufacturer of contact lenses, follow for a four-year period: 2016 2015 2014 2013 Net sales revenue Profit $759 000 $701 000 $629 000 $659 000 56 000 43 000 38 000 48 000 Ending ordinary shareholders' equity 364 000 356 000 328 000 300 000 Requirements 1 Calculate trend analyses for each item for 2014–16. Use 2013 as the base year and round to the nearest whole percentage. 2 Calculate the rate of return on ordinary shareholders' equity for 2014–16, rounding to three decimal places.
P18-1 Trend analysis and return on common equity [20–30 min] Net sales revenue, profit and ordinary shareholders' equity for Visi Mission Corporation Ltd, a manufacturer of contact lenses, follow for a four-year period: 2016 2015 2014 2013 Net sales revenue Profit $759 000 $701 000 $629 000 $659 000 56 000 43 000 38 000 48 000 Ending ordinary shareholders' equity 364 000 356 000 328 000 300 000 Requirements 1 Calculate trend analyses for each item for 2014–16. Use 2013 as the base year and round to the nearest whole percentage. 2 Calculate the rate of return on ordinary shareholders' equity for 2014–16, rounding to three decimal places.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 99.5C
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![P18-1 Trend analysis and return on common equity [20–30 min]
Net sales revenue, profit and ordinary shareholders' equity for Visi Mission Corporation Ltd, a
manufacturer of contact lenses, follow for a four-year period:
2016
2015
2014
2013
Net sales revenue
$759 000
$701 000
$629 000
$659 000
Profit
56 000
43 000
38 000
48 000
Ending ordinary shareholders' equity
364 000
356 000
328 000
300 000
Requirements
1 Calculate trend analyses for each item for 2014–16. Use 2013 as the base year and round
to the nearest whole percentage.
2 Calculate the rate of return on ordinary shareholders' equity for 2014–16, rounding to
three decimal places.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9d6686f0-24e3-43de-bc21-a827730605bb%2F8283930f-8429-4f78-972d-9c8a211208d9%2F3y2hia_processed.png&w=3840&q=75)
Transcribed Image Text:P18-1 Trend analysis and return on common equity [20–30 min]
Net sales revenue, profit and ordinary shareholders' equity for Visi Mission Corporation Ltd, a
manufacturer of contact lenses, follow for a four-year period:
2016
2015
2014
2013
Net sales revenue
$759 000
$701 000
$629 000
$659 000
Profit
56 000
43 000
38 000
48 000
Ending ordinary shareholders' equity
364 000
356 000
328 000
300 000
Requirements
1 Calculate trend analyses for each item for 2014–16. Use 2013 as the base year and round
to the nearest whole percentage.
2 Calculate the rate of return on ordinary shareholders' equity for 2014–16, rounding to
three decimal places.
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