Rotorua Products, Ltd., of New Zealand markets agricultural products for the burgeoning Asian consumer market. The company’s current assets, current liabilities, and sales over the last five years (Year 5 is the most recent year) are as follows: Year 1Year 2Year 3Year 4Year 5Sales$4,617,010 $4,754,310 $5,081,970 $5,459,390 $5,735,870 Cash$92,753 $90,069 $93,105 $80,319 $78,860 Accounts receivable, net 404,289 421,258 440,963 511,995 567,286 Inventory 808,517 867,939 816,543 882,341 903,474 Total current assets$1,305,559 $1,379,266 $1,350,611 $1,474,655 $1,549,620 Current liabilities$312,169 $333,151 $342,274 $318,352 $403,812 Required:1. Express all of the asset, liability, and sales data in trend percentages. Use Year 1 as the base year.

Formula: Year 2 sales % = ( Year 2 sales value / Year 1 Sales value ) x 100

Answered: Rotorua Products, Ltd., of New Zealand…

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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Rotorua Products, Ltd., of New Zealand markets agricultural products for the burgeoning Asian consumer market. The company’s current assets, current liabilities, and sales over the last five years (Year 5 is the most recent year) are as follows:

	Year 1	Year 2	Year 3	Year 4	Year 5
Sales	$	4,617,010		$	4,754,310	$	5,081,970	$	5,459,390	$	5,735,870
Cash	$	92,753		$	90,069	$	93,105	$	80,319	$	78,860
Accounts receivable, net		404,289			421,258		440,963		511,995		567,286
Inventory		808,517			867,939		816,543		882,341		903,474
Total current assets	$	1,305,559		$	1,379,266	$	1,350,611	$	1,474,655	$	1,549,620
Current liabilities	$	312,169		$	333,151	$	342,274	$	318,352	$	403,812