The management of Maxlab Ltd. has provided you with the following data relating to their operations for the last two financial periods. 2021 2020 Notes receivable $ 20,000 $ -0- Accounts receivable $182,000 $140,000 Sales $930,000 $750,000 Operating expenses $170,000 $200,000 Payables $45,000 $20,000 Required: Calculate the percentage change for each item as reported above using 2020 as the base year and explain your result.
The management of Maxlab Ltd. has provided you with the following data relating to their operations for the last two financial periods. 2021 2020 Notes receivable $ 20,000 $ -0- Accounts receivable $182,000 $140,000 Sales $930,000 $750,000 Operating expenses $170,000 $200,000 Payables $45,000 $20,000 Required: Calculate the percentage change for each item as reported above using 2020 as the base year and explain your result.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The management of Maxlab Ltd. has provided you with the following data relating to their operations for the last two financial periods.
| 2021 | 2020 | |
| Notes receivable | $ 20,000 | $ -0- |
| $182,000 | $140,000 | |
| Sales | $930,000 | $750,000 |
| Operating expenses | $170,000 | $200,000 |
| Payables | $45,000 | $20,000 |
Required:
Calculate the percentage change for each item as reported above using 2020 as the base year and explain your result.
Expert Solution
Step 1
Percentage change in the values means to compute the change in the values of various assets and liabilities in the current year as compared to the previous year.
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