You are given the financial statements of a company for over the 6-year periods (2016 – 2021). Considering 2016 as the base year, compute the trend index for the following items: a. Revenue, cost of goods sold, total expenses and net earnings. Comment on the trends of each of the items. b. Total assets, total liabilities and shareholders’ equity. Comment on the trends of each of the items. c. Cash flow from operation, cash flow from investing, cash flow from financing and closing cash balances. Comment on the trends of each of the items.
You are given the financial statements of a company for over the 6-year periods (2016 – 2021). Considering 2016 as the base year, compute the trend index for the following items: a. Revenue, cost of goods sold, total expenses and net earnings. Comment on the trends of each of the items. b. Total assets, total liabilities and shareholders’ equity. Comment on the trends of each of the items. c. Cash flow from operation, cash flow from investing, cash flow from financing and closing cash balances. Comment on the trends of each of the items.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
You are given the financial statements of a company for over the 6-year periods (2016 –
2021).
Considering 2016 as the base year, compute the trend index for the following items:
a. Revenue, cost of goods sold, total expenses and net earnings. Comment on the
trends of each of the items.
b. Total assets, total liabilities and shareholders’ equity. Comment on the trends of
each of the items.
c. Cash flow from operation, cash flow from investing, cash flow from financing and
closing cash balances. Comment on the trends of each of the items.
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