Show the trend percentages for Sales and Net Income. Use 2015 ...

Question

Show the trend percentages for Sales and Net Income. Use 2015 as the base year:

Table showing trend percentages for Sales and Net Income from 2015 to 2018.

Accepted Answer

Alright, so let's practice here our trend percentages. So we're going to do sales and net income and we're going to use 2015 as the base year. Okay? So our base year is always gonna be 2015 in both cases, but let's go ahead and just do sales first. Let's do all of the answers for sales. And in the base year, it's always gonna be a 100 a 100% because we're gonna take that year's amount divided by the base year's amount which is the same number times a 100. So we're going to get a 100% in the base year, right? That should make sense. Now, let's go on to the next year, 20 16. So our numerator is going to be that year's number 8,790 divided by our base year of 8,410 and we multiply by a 100. So 8790 divided by 8410 times a 100, so so that comes out to we'll say well, I'll put a decimal here since it's right in the middle, 104.5%. Okay. Let's go on to the next one, 9260 divided by 8410 times a 100. Nothing too crazy here. There's not really a trick to this as long as you remember what you have to do, you should get this right. So this one's approximately a 110%, a 110.1% and then finally, 9,960 divided by our base year of 8,410 times a 100. 9,960 divided by 8,410 times 100, so that comes out to 118.4%. So what does this tell us? Look at this trend. Our sales have been increasing year over year, right? We see this increasing trend, from our base year. So now let's do the same thing with net income right here. We're gonna do the same thing but we have our base now is 4.32. So what do you think is gonna be our trend percentage in the base year? It's gonna be a 100%, right? 432 divided by 432 times a 100, it always comes out to a 100%. So let's keep going here. 480 divided by 432 times a 100, get my calculator back out, 4 480 divided by 432 times a 100, that comes out to a 111.1%. Cool. Let's keep going. 500 divided by 432 times a 100 and that comes out to 115 0.7% and finally, the last one, 670 divided by 432 times a 100. Alright? So you guys should definitely have your trend percentages down by now. It's just gonna be a 155.1% here. So again, we've seen trending increases in our net income. And something that's beneficial to note here too as well, notice that our net income has been trending up but it's trending up even faster than our sales. So that means we're doing other efficiencies. Maybe our costs are also decreasing. Not only our sales increasing, but our costs are decreasing to increase our trend in our net income. Cool? Alright. So let's go ahead and move on to the next one.

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Show the trend percentages for Sales and Net Income. Use 2015 as the base year:

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