What will be the trend percentage if the inventory of firm is rs200000 rs 240000 rs 300000 rs 400000 respectively
Answers
Answer:
100,120,150,200
Step-by-step explanation:
answer is
Answer:
You may compare financial data such as net sales, cost of goods sold, operational expenditures, gross profit, and inventory over time to a base period or year using a trend percentage, also known as an "index number." It is a type of horizontal analysis that shows changes or trends over time in a company's financial statement accounts.
Step-by-step explanation:
Methods for determining trend percentages
To identify areas of strength or weakness in a company's financial statements, you can examine trend percentages for one or more accounts. The simplest way to examine trend percentages is to put them in a table with one row per account and one column yearly.
Steps to calculate trend percentages:
1. Select the base year or period
2. Assign a weight of 100% to the figures or amounts that appear on the base-year financial statements
3. Compute the trend percentage for the second year
4. Write your result as a percentage in the third column
5. Calculate the trend percentage for the third year
6. Write your result as a percentage in the fourth column
The trend percentage will be
First-year (base year) = 100%
Second-year = 120%
Third-year = 150%
Fourth year = 200%
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