Trend Percentages
Big Event Limited's sales, current assets, and current liabilities (all in thousands of dollars) have been reported over the past five years (year 5 is the most recent year):
|
|
Year 5
|
Year 4
|
Year 3
|
Year 2
|
Year 1
|
|
Sales
|
$11,250
|
$10,800
|
$9,900
|
$9,450
|
$9,000
|
|
Current assets: Cash
|
$128
|
$144
|
$168
|
$176
|
$160
|
|
Accounts receivable
|
1,120
|
992
|
864
|
832
|
800
|
|
Inventory
|
1,792
|
1,760
|
1,632
|
1,728
|
1,600
|
|
Total current assets
|
$3,040
|
$2,896
|
$2,664
|
$2,736
|
$2,560
|
|
Current liabilities
|
$780
|
$636
|
$648
|
$660
|
$600
|
Required:
1. Express all of the asset, liability, and sales data in trend percentages. (Show percentages for each item.) Use year 1 as the base year, and carry computations to one decimal place.
2. Comment on the results of your analysis.