Chapter 13, Problem 1PSA

1.

To determine

Introduction: Trend analysis represents the trend percent patterns in data across periods. It considers the previous period as the base period and compares the data trend across periods. Trend percent is computed as follows:

  $\text{Trend percent}=\frac{\text{Analysis period amount}}{\text{Base period amount}}\times 100$

The trend analysis for the income statement and balance sheet.

2.

To determine

Introduction: Trend analysis represents the trend percent patterns in data across periods. It considers the previous period as the base period and compares the data trend across periods. Trend percent is computed as follows:

  $\text{Trend percent}=\frac{\text{Analysis period amount}}{\text{Base period amount}}\times 100$

If the sales grow steadily, net income as a percent of sales growth over the past four years, and the inventory increase over this period.