Horngren's Financial & Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780133866292
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 15, Problem 15.3SE
Calculating trend analysis
Variline Corp. reported the following revenues and net income amounts:
| (In millions) | 2017 | 2016 | 2015 | 2014 |
| Revenue | $9,990 | $9,890 | $ 9,290 | $ 9,090 |
| Net Income | 7,750 | 7,570 | 5,670 | 4,990 |
Requirements
1. Calculate Variline's trend analysis for revenues and net income. Use 2014 as the base year, and round to the nearest percent.
2. Which measure increased at a higher rate during 20 15-20 17?
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Computing trend analysis
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Requirements
Compute a trend analysis for net revenue and net income. Round to the nearest full percent.
Which grew faster during the period, net revenue or net income?
The trend analysis report of Marswell, Inc. is given below (in millions):
2019 2018
2017 2016
2015
Net income
$690
$604 $470 $404 $398
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Trend percentages
173%
Which of the following is a correct conclusion from the above analysis?
OA. Net income for 2017 has decreased by 118% over that for 2015.
OB. Net income for 2017 has increased by 118% over that for 2015.
OC. Net income for 2017 has decreased by 18% over that for 2015.
O D. Net income for 2017 has increased by 18% over that for 2015.
The trend analysis report of Poplar, Inc. is given below (in millions):
2019 2018 2017 2016 2015
Net income
Trend percentages
$700 $606 $470 $405 $402
174% 151% 117% 101% 100%
Which of the following is a correct conclusion from the above analysis?
Net income for 2019 is 174% of net income for 2015.
Net income for 2018 is 151% of the previous year.
Net income for 2019 increased by 174% from 2018.
Net income for 2018 decreased by 151% from 2017.
Chapter 15 Solutions
Horngren's Financial & Managerial Accounting (5th Edition)
Ch. 15 - What part of the Libertys annual report is written...Ch. 15 - Horizontal analysis of Liberty's balance sheet for...Ch. 15 - Vertical analysis of Liberty's balance sheet for...Ch. 15 - Which statement best describes Liberty's acid-test...Ch. 15 - Liberty's inventory turnover during 2017 was...Ch. 15 - Prob. 6QCCh. 15 - Prob. 7QCCh. 15 - Liberty's rate of return on common stockholders'...Ch. 15 - The company has 2,500 shares of common stock...Ch. 15 - Prob. 10AQC
Ch. 15 - What ate the three main ways to analyze financial...Ch. 15 - What is an annual report? Briefly describe the key...Ch. 15 - Prob. 3RQCh. 15 - What is trend analysis, and how does it differ...Ch. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Prob. 7RQCh. 15 - Briefly describe the ratios that can be used to...Ch. 15 - Prob. 9RQCh. 15 - Briefly describe the ratios that can be used to...Ch. 15 - Briefly describe the ratios that can be used to...Ch. 15 - Prob. 12RQCh. 15 - Prob. 13RQCh. 15 - Prob. 14RQCh. 15 - Prob. 15RQCh. 15 - Prob. 15.1SECh. 15 - Performing horizontal analysis McDonald Corp....Ch. 15 - Calculating trend analysis Variline Corp. reported...Ch. 15 - Performing vertical analysis Hoosier Optical...Ch. 15 - Preparing common-size income statement Data for...Ch. 15 - Shine's Companies, a home improvement store chain,...Ch. 15 - Shine's Companies, a home improvement store chain,...Ch. 15 - Shine's Companies, a home improvement store chain,...Ch. 15 - Prob. 15.9SECh. 15 - Prob. 15.10SECh. 15 - Prob. 15.11SECh. 15 - Using ratios to reconstruct a balance sheet...Ch. 15 - Prob. 15.13SECh. 15 - Prob. 15.14SECh. 15 - Prob. 15.15ECh. 15 - Computing trend analysis Grand Oaks Realty's net...Ch. 15 - Prob. 15.17ECh. 15 - Prob. 15.18ECh. 15 - Prob. 15.19ECh. 15 - Prob. 15.20ECh. 15 - Analyzing the ability to pay liabilities Big Bend...Ch. 15 - Analyzing profitability Varsity, Inc.s comparative...Ch. 15 - Prob. 15.23ECh. 15 - Using ratios to reconstruct a balance sheet The...Ch. 15 - Prob. 15.25ECh. 15 - Computing earnings per share Falconi Academy...Ch. 15 - Prob. 15.27APCh. 15 - Prob. 15.28APCh. 15 - Prob. 15.29APCh. 15 - Prob. 15.30APCh. 15 - Using ratios to evaluate a stock investment...Ch. 15 - Prob. 15.32APCh. 15 - Preparing an income statement The following...Ch. 15 - Computing trend analysis and return on common...Ch. 15 - Prob. 15.35BPCh. 15 - Prob. 15.36BPCh. 15 - Determining the effects of business transactions...Ch. 15 - Prob. 15.38BPCh. 15 - Prob. 15.39BPCh. 15 - Prob. 15.40BPCh. 15 - Prob. 15.41CPCh. 15 - Lance Berkman is the controller of Saturn, a dance...Ch. 15 - Prob. 15.1CTEI
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