Chapter 12, Problem 13AE

Horizontal analysis (Learning Objective 2) 15-20 min.

Below are net sales and net income data for a five-year period.

	Year 5	Year 4	Year 3	Year 2	Year 1
Net Sales.................	$313,700	$293,300	$270,300	$252,500	$255,000
Net Income.............	76,200	71,100	65,300	62,100	64,000

Requirements

1. 1. Compute trend percentages for net sales and net income for the five-year period, using year 1 as the base year. Round to the nearest percent.
2. 2. Which grew faster during the period: net sales or net income?