Question

Trend Percentages
Net sales, net income, and total asset figures for Vibrant Controls, Inc., for five consecutive years are given below (Vibrant manufactures pollution controls):

	Annual Amounts (Thousands of Dollars)
	Year 1	Year 2	Year 3	Year 4	Year 5
Net sales	$72,500	$80,800	$85,250	$89,400	$95,700
Net income	4,200	4,650	4,900	5,160	5,790
Total assets	43,500	46,400	49,700	52,000	55,900

Required
a. Calculate trend percentages, using Year 1 as the base year.
b. Calculate the return on sales for each year.

Round trend percentage answers to one decimal place (ex: 0.2345 = 23.5).

	Trend Percentages
	Year 1	Year 2	Year 3	Year 4	Year 5
Net sales	Answer	Answer	Answer	Answer	Answer
Net income	Answer	Answer	Answer	Answer	Answer
Total assets	Answer	Answer	Answer	Answer	Answer

Round answers to 2 decimal places (ex: 0.02345 = 2.35%).

	Year 1	Year 2	Year 3	Year 4	Year 5
Return on Sales	Answer	Answer	Answer	Answer	Answer

Answer 1

a.

	Trend Percentages
	Year 1	Year 2	Year 3	Year 4	Year 5
Net sales	100%	111.4%	117.6%	123.3%	132.0%
Net income	100%	110.7%	116.7%	122.9%	137.9%
Total assets	100%	106.7%	114.3%	119.5%	128.5%

Trend percentages = Dollar amount/ Year 1 dollar amount

b.

	Year 1	Year 2	Year 3	Year 4	Year 5
Net income	4,200	4,650	4,900	5,160	5,790
Net sales	$72,500	$80,800	$85,250	$89,400	$95,700
Return on Sales ( Net income/Net sales)	5.79%	5.75%	5.75%	5.77%	6.05%