Chapter 5, Problem 1BIC

Computing trend analysis Grand Oaks Realty’s net revenue and net income for the following five—year period, using 2015 as the base year, follow: Requirements Compute a trend analysis for net revenue and net income. Round to the nearest full percent. Which grew faster during the period, net revenue or net income?

Compute trend percent for the following accounts using 2018 as the base year. For each of the three accounts, state whether the situation as revealed by the trend percent appears to be favorable or unfavorable.     2022  2021  2020  2019  2018  Sales  $282,880  $270,800  $252,600  $234,560  $150,000  Cost of goods sold    128,200    122,080    115,280    106,440      67,000  Accounts receivable      18,100      17,300      16,400      15,200        9,000

The standardized approach for calculating operational risk capital requirements uses beta factors for a given business line and annual gross income for business lines over a 3-year period. Which of the following business units has the highest beta factor? A. Trading and sales. B. Retail banking. C. Agency and custody services. D. Asset management.

Conduct a trend analysis (horizontal) for the company over current and last two years based on Comparative SFP. (note: see the second picture as example of horizontal analysis. The first photo is the given)

Use the following information to determine the Prior Year and Current Year trend percents for net sales using the Year as the base year Enter the answers thousands of dollars.

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

Compare the performance of both companies with each other, for each of the calculated indicators and determine if it is necessary to make any adjustment or adjustments to better position the firm with the lowest performance, facing the end of the next fiscal year. Explain what adjustments you propose and why.

Refine the forecast by using the historic growth in product revenue and service revenue from 2017 to 2018 to estimate 2019 products and service revenues respectively for the year 2019. Use historic growth in cost of revenue for each of the segments to forecast separate segment cost of revenue.

Suppose a company has had the historic sales figures shown below. What would be the forecast for next years sales using the average approach?