Question

Exercise 14-7 Trend Percentages [LO14-1] Rotorua Products, Ltd., of New Zealand markets agricultural products for the burgeoning Asian consumer market. The company’s current assets, current liabilities, and sales over the last five years (Year 5 is the most recent year) are as follows: Year 1 Year 2 Year 3 Year 4 Year 5 Sales $ 4,542,180 $ 4,808,250 $ 5,080,450 $ 5,484,830 $ 5,683,230 Cash $ 95,706 $ 103,151 $ 102,481 $ 79,325 $ 65,455 Accounts receivable, net 404,163 424,950 436,823 509,990 564,813 Inventory 809,570 877,017 834,956 891,516 912,503 Total current assets $ 1,309,439 $ 1,405,118 $ 1,374,260 $ 1,480,831 $ 1,542,771 Current liabilities $ 301,363 $ 342,540 $ 331,353 $ 321,208 $ 402,975 Required: 1. Express all of the asset, liability, and sales data in trend percentages. Use Year 1 as the base year. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)

Answer 1