P18-1 Trend analysis and return on common equity [20–30 min]Net sales revenue, profit and ordinary shareholders' equity for Visi Mission Corporation Ltd, amanufacturer of contact lenses, follow for a four-year period:2016201520142013Net sales revenue$759 000$701 000$629 000$659 000Profit56 00043 00038 00048 000Ending ordinary shareholders' equity364 000356 000328 000300 000Requirements1 Calculate trend analyses for each item for 2014–16. Use 2013 as the base year and roundto the nearest whole percentage.2 Calculate the rate of return on ordinary shareholders' equity for 2014–16, rounding tothree decimal places.

Trend analysis shows changes in the financial statement values of a certain year relative to a base…

P18-1 Trend analysis and return on common equity [20–30 min] Net sales revenue, profit and ordinary shareholders' equity for Visi Mission Corporation Ltd, a manufacturer of contact lenses, follow for a four-year period: 2016 2015 2014 2013 Net sales revenue Profit $759 000 $701 000 $629 000 $659 000 56 000 43 000 38 000 48 000 Ending ordinary shareholders' equity 364 000 356 000 328 000 300 000 Requirements 1 Calculate trend analyses for each item for 2014–16. Use 2013 as the base year and round to the nearest whole percentage. 2 Calculate the rate of return on ordinary shareholders' equity for 2014–16, rounding to three decimal places.

P18-1 Trend analysis and return on common equity [20–30 min] Net sales revenue, profit and ordinary shareholders' equity for Visi Mission Corporation Ltd, a manufacturer of contact lenses, follow for a four-year period: 2016 2015 2014 2013 Net sales revenue Profit $759 000 $701 000 $629 000 $659 000 56 000 43 000 38 000 48 000 Ending ordinary shareholders' equity 364 000 356 000 328 000 300 000 Requirements 1 Calculate trend analyses for each item for 2014–16. Use 2013 as the base year and round to the nearest whole percentage. 2 Calculate the rate of return on ordinary shareholders' equity for 2014–16, rounding to three decimal places.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 99.4C

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