Chapter 15, Problem 15.36BP

Requirement 1:

To determine

Trend Analysis: Trend analysis is one form of horizontal analysis. It helps the user to know the changes that has been occurred for several years. When trend analysis is done, firstly certain value is taken as a base and further, other figures are matched to the proportion of the base figure.

Formula:

$\text{Trend}\text{percentage}=\left(\frac{\text{Any}\text{period}\text{amount}}{\text{Base}\text{period}\text{amount}}\right)\times 100$

To compute: Trend analysis for net sales revenue and net income.

Requirement 2:

To determine

Profitability analysis

Requirement 3:

To determine

To evaluate: The ability to sell merchandise inventory.

Requirement 4

To determine

To evaluate: The ability to pay debts.

Requirement 5

To determine

To evaluate: Dividends using dividends payout ratio

Requirement 6

To determine

To determine:Final analysis