Question

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	$	4,559,610		$	4,814,030		$	5,122,460		$	5,486,720		$	5,799,050
Cash	$	91,403		$	90,376		$	85,907		$	89,532		$	67,645
Accounts receivable, net		410,221			429,208			433,534			502,535			572,563
Inventory		805,007			866,000			834,383			899,987			899,733
Total current assets	$	1,306,631		$	1,385,584		$	1,353,824		$	1,492,054		$	1,539,941
Current liabilities	$	310,108		$	333,459		$	335,921		$	331,437		$	395,120

Required:

1. Express all of the asset, liability, and sales data in trend percentages. Use Year 1 as the base year.

Year 1		Year 2		Year 3		Year 4		Year 5
Sales		%		%		%		%		%
Current assets:
Cash		%		%		%		%		%
Accounts receivable		%		%		%		%		%
Inventory		%		%		%		%		%
Total current assets		%		%		%		%		%
Current liabilities		%		%		%		%		%

Answer 1