Rotorua Products, Ltd., of New Zealand markets agricultural products for the burgeoning Asian consumermarket. The company’s current assets, current liabilities, and sales have been reported as follows over thelast five years (Year 5 is the most recent year):Year 5 Year 4 Year 3 Year 2 Year 1Sales ...................................... $NZ2,250,000 $NZ2,160,000 $NZ2,070,000 $NZ1,980,000 $NZ1,800,000Cash ...................................... $NZ 30,000 $NZ 40,000 $NZ 48,000 $NZ 65,000 $NZ 50,000Accounts receivable, net ....... 570,000 510,000 405,000 345,000 300,000Inventory ................................ 750,000 720,000 690,000 660,000 600,000Total current assets ............... $NZ1,350,000 $NZ1,270,000 $NZ1,143,000 $NZ1,070,000 $NZ 950,000Current liabilities .................... $NZ 640,000 $NZ 580,000 $NZ 520,000 $NZ 440,000 $NZ 400,000$NZ stands for New Zealand dollars.Required:1. Express all of the asset, liability, and sales data in trend percentages. (Show percentages for eachitem.) Use Year 1 as the base year and carry computations to one decimal place.2. Comment on the results of your analysis.
Rotorua Products, Ltd., of New Zealand markets agricultural products for the burgeoning Asian consumer
market. The company’s current assets, current liabilities, and sales have been reported as follows over the
last five years (Year 5 is the most recent year):
Year 5 Year 4 Year 3 Year 2 Year 1
Sales ...................................... $NZ2,250,000 $NZ2,160,000 $NZ2,070,000 $NZ1,980,000 $NZ1,800,000
Cash ...................................... $NZ 30,000 $NZ 40,000 $NZ 48,000 $NZ 65,000 $NZ 50,000
Accounts receivable, net ....... 570,000 510,000 405,000 345,000 300,000
Inventory ................................ 750,000 720,000 690,000 660,000 600,000
Total current assets ............... $NZ1,350,000 $NZ1,270,000 $NZ1,143,000 $NZ1,070,000 $NZ 950,000
Current liabilities .................... $NZ 640,000 $NZ 580,000 $NZ 520,000 $NZ 440,000 $NZ 400,000
$NZ stands for New Zealand dollars.
Required:
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 on the results of your analysis.
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