Concept Introduction
Trend Analysis: Trend Analysis or Trend Percentages are used to determine the change in a particular item like sales revenue, net income etc. over a longer period of time. A base year has to be chosen in order to calculate the trend percentages.
Return on Common Stockholders’ Equity: Return on Common Stockholders’ Equity (ROCE) is a financial profitability ratio that measures the ability of a company to generate profits with the money invested by its shareholders. It is calculated by dividing net income available to common stockholders by average common stockholders’ equity for a particular period.
Requirement 1
To Compute:
The trend analyses for each given item that is net sales revenue, net income, and common stockholders’ equity for 2015-2017, using 2014 as the base year.
Requirement 2
To Compute:
The
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Horngren's Accounting (11th Edition)
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