Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 13, Problem 4QS
Summary Introduction
Concept Introduction:
Horizontal analysis is one of the techniques of financial statement analysis. This analysis is used to evaluate the changes in amount of financial statement over a period of time. The trend is calculated in amount as well as in percentage taking the previous period as basis.
To calculate:the trend % of net sales for the year 2017 and year 2018.
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Calculating trend analysis
Muscateer Corp reported the following revenues and net income amounts:
Requirements
Calculate Muscateer’s trend analysis for revenues and net income Use 2016 as the base year and round to the nearest percent.
Which measure increased at a higher rate during 2017-2019?
Compute trend percents for the above accounts, using 2017 as the base year. For each of the three accounts, state whether the situation as revealed by the trend percents appears to be favorable or unfavorable.
Sales
$ 666,761
$ 432,962
$ 344,990
$ 249,090
$ 180,500
Cost of goods sold
329,263
213,901
172,445
124,054
88,445
Accounts receivable
32,138
25,242
23,632
14,547
12,328
Compute trend percentages forRolling Hills Realtors' net revenue and net income for the following five-year period, using 2016 as the base year. Which grew faster during the period, net revenue or net income? Enter trend percentage values for net revenue and net income in the table below. (Enter the results as a percentage.)
2020
2019
2018
2017
2016
Net revenue. . . . . .
%
%
%
%
%
Net income. . . . . . .
%
%
%
%
%
Data table
(in thousands)
2020
2019
2018
2017
2016
Net revenue. . . . . .
$1,271
$1,148
$1,066
$943
$1,025
Net income. . . . . . .
$180
$168
$126
$96
$120
Chapter 13 Solutions
Loose Leaf for Financial Accounting: Information for Decisions
Ch. 13 - Explain the difference between financial reporting...Ch. 13 - Prob. 2DQCh. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Prob. 7DQCh. 13 - Prob. 8DQCh. 13 - Prob. 9DQCh. 13 - Prob. 10DQ
Ch. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - Prob. 13DQCh. 13 - Prob. 14DQCh. 13 - Prob. 15DQCh. 13 - Prob. 16DQCh. 13 - Prob. 17DQCh. 13 - Prob. 1QSCh. 13 - Prob. 2QSCh. 13 - Prob. 3QSCh. 13 - Prob. 4QSCh. 13 - Prob. 5QSCh. 13 - Prob. 6QSCh. 13 - Prob. 7QSCh. 13 - Prob. 8QSCh. 13 - Which of the following gains or losses would...Ch. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - Prob. 3ECh. 13 - Prob. 4ECh. 13 - Prob. 5ECh. 13 - Prob. 6ECh. 13 - Prob. 7ECh. 13 - Prob. 10ECh. 13 - Prob. 12ECh. 13 - Prob. 13ECh. 13 - Prob. 14ECh. 13 - Prob. 15ECh. 13 - Prob. 16ECh. 13 - Prob. 1PSACh. 13 - Prob. 2PSACh. 13 - Prob. 3PSACh. 13 - Prob. 5PSACh. 13 - Prob. 6PSACh. 13 - Selected comparative financial statements of...Ch. 13 - Prob. 2PSBCh. 13 - Prob. 3PSBCh. 13 - Prob. 5PSBCh. 13 - Prob. 6PSBCh. 13 - Prob. 13SPCh. 13 - Prob. 2FSACh. 13 - Prob. 3FSACh. 13 - Prob. 1BTNCh. 13 - Prob. 5BTN
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