Chapter 15, Problem 15.14E

Requirement 1:

To determine

Trend Analysis: Trend analysis is one form of horizontal analysis. It helps the user to know the changes that has been occurred for several years. When trend analysis is done, firstly certain value is taken as a base and further, other figures are matched to the proportion of the base figure.

Formula:

$\text{Trend}\text{percentage}=\left(\frac{\text{Any}\text{period}\text{amount}}{\text{Base}\text{period}\text{amount}}\right)\times 100$

To compute: Trend analysis for net revenue and net income.

Requirement 2:

To determine

The growth of net revenue and net income