The image presents a financial analysis template used to compute trend percentages for sales, cost of goods sold, and accounts receivable from the years 2017 to 2021, using 2017 as the base year. Below is a transcription of the content:### Table of Financial Data:- **Sales:** - 2021: $511,648 - 2020: $332,239 - 2019: $272,327 - 2018: $200,979 - 2017: $146,700- **Cost of Goods Sold:** - 2021: $253,158 - 2020: $164,397 - 2019: $136,740 - 2018: $99,730 - 2017: $71,883- **Accounts Receivable:** - 2021: $24,815 - 2020: $19,403 - 2019: $18,573 - 2018: $11,757 - 2017: $10,064The text instructs to compute trend percentages for each category using 2017 as the base year. For each category, you are asked to determine whether the trend is favorable or unfavorable.### Trend Percent Calculation Sections:1. **Trend Percent for Net Sales:** - Spaces provided to calculate the trend percent for each year from 2017 to 2021 as a percentage of the 2017 sales value. - A prompt asking: "Is the trend percent for Net Sales favorable or unfavorable?"2. **Trend Percent for Cost of Goods Sold:** - Spaces provided to calculate the trend percent for each year from 2017 to 2021 as a percentage of the 2017 cost of goods sold value. - A prompt asking: "Is the trend percent for Cost of Goods Sold favorable or unfavorable?"3. **Trend Percent for Accounts Receivable:** - Spaces provided to calculate the trend percent for each year from 2017 to 2021 as a percentage of the 2017 accounts receivable value. - A prompt asking: "Is the trend percent for Accounts Receivable favorable or unfavorable?"### Explanation of Tables:Each section includes a structured table to fill in the calculations. The "Numerator" column represents the value

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Description: The image presents a financial analysis template used to compute trend percentages for sales, cost of goods sold, and accounts receivable from the years 2017 to 2021, using 2017 as the base year. Below is a transcription of the content:### Table of

Trend analysis is the analysis of the pattern which is created by comparing the financial…

Business

Accounting

Sales Cost of goods sold Accounts receivable 2021 $ 511,648 253,158 24,815 2020 $ 332,239 164,397 19,403 2019 $ 272,327 136,740 18,573 2018 $ 200,979 99,730 11,757 2017 $ 146,700 71,883 10,064 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 Cost of goods sold Accounts receivable 2021 $ 511,648 253,158 24,815 2020 $ 332,239 164,397 19,403 2019 $ 272,327 136,740 18,573 2018 $ 200,979 99,730 11,757 2017 $ 146,700 71,883 10,064 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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The image presents a financial analysis template used to compute trend percentages for sales, cost of goods sold, and accounts receivable from the years 2017 to 2021, using 2017 as the base year. Below is a transcription of the content:

### Table of Financial Data:

- **Sales:**
- 2021: $511,648
- 2020: $332,239
- 2019: $272,327
- 2018: $200,979
- 2017: $146,700

- **Cost of Goods Sold:**
- 2021: $253,158
- 2020: $164,397
- 2019: $136,740
- 2018: $99,730
- 2017: $71,883

- **Accounts Receivable:**
- 2021: $24,815
- 2020: $19,403
- 2019: $18,573
- 2018: $11,757
- 2017: $10,064

The text instructs to compute trend percentages for each category using 2017 as the base year. For each category, you are asked to determine whether the trend is favorable or unfavorable.

### Trend Percent Calculation Sections:

1. **Trend Percent for Net Sales:**
- Spaces provided to calculate the trend percent for each year from 2017 to 2021 as a percentage of the 2017 sales value.
- A prompt asking: "Is the trend percent for Net Sales favorable or unfavorable?"

2. **Trend Percent for Cost of Goods Sold:**
- Spaces provided to calculate the trend percent for each year from 2017 to 2021 as a percentage of the 2017 cost of goods sold value.
- A prompt asking: "Is the trend percent for Cost of Goods Sold favorable or unfavorable?"

3. **Trend Percent for Accounts Receivable:**
- Spaces provided to calculate the trend percent for each year from 2017 to 2021 as a percentage of the 2017 accounts receivable value.
- A prompt asking: "Is the trend percent for Accounts Receivable favorable or unfavorable?"

### Explanation of Tables:

Each section includes a structured table to fill in the calculations. The "Numerator" column represents the value

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