Trend Analysis: Trend analysis is one form of horizontal analysis. It helps the user to calculate the changes that occur in the economic cycle of a business for many years in terms of percentage change using one of the years as the base year. To compute: Trend analyses for revenues, net income, and ending common stockholders’ equity for 2019-2016.

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Chapter 15, Problem 15.30BP

Requirement 1:

To determine

Trend Analysis: Trend analysis is one form of horizontal analysis. It helps the user to calculate the changes that occur in the economic cycle of a business for many years in terms of percentage change using one of the years as the base year.

To compute: Trend analyses for revenues, net income, and ending common stockholders’ equity for 2019-2016.

Requirement 2:

To determine

To compute: Compute the rate of return on common stockholders’ equity for 2016-2019.

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