Question

1 Trend analysis [5–10 min]
Mariner, Corp., reported the following revenues and net income amounts:

(In millions)	2013	2012	2011	2010
Revenue ..............................	$9,910	$9,700	$9,210	$9,110
Net income..........................	7,475	7,400	5,495	4,690

Requirements:

1. Calculate Mariner’s trend analysis for revenues and net income. Use 2010 as the base year, and round to the nearest percent.

2. Which measure increased faster during 2011–2013?

Answer 1

1. Base year = 2010

Trend percentage fot base year = 100%

Calculation of Trend Percentages

Particulars	2013	2012	2011	2010
Revenue	$9,910	$9,700	$9,210	$9,110
Trend percentage (Revenue of year / Base year revenue)	($9,910/$9,110) x 100 = 108.78% = 109%	($9,700/$9,110) x 100 = 106.48% = 106%	($9,210/$9,110) x 100 = 101.10% = 101%	($9,210/$9,110) x 100 = 100%
Net income	$7,475	$7,400	$5,495	$4,690
Trend percentage (Net income of year / Base year Net income)	($7,475/$4,690) x 100 = 159.38% = 159%	($7,400/$4,690) x 100 = 157.78% = 158%	($5,495/$4,690) x 100 = 117.16% = 117%	($4,690/$4,690) x 100 = 100%

2. Net income increased faster. It increased by 59.38% during the period as compared to sales which increased by only 8.78%.