Use the following selected information from Whitman Corp.

-To determine the Year 1 and Year 2 trend percentages for net sales using Year 1 as the base.
A)36.4% for Year 2 and 41.1% for Year 1.
B)55.0% for Year 2 and 56.0% for Year 1.
C)119.4% for Year 2 and 100.0% for Year 1.
D)117.2% for Year 2 and 100.0% for Year 1.
E)65.1% for Year 2 and 64.6% for Year 1.

Question

Use the following selected information from Whitman Corp.

-To determine the Year 1 and Year 2 trend percentages for net sales using Year 1 as the base. 
A)36.4% for Year 2 and 41.1% for Year 1. 
B)55.0% for Year 2 and 56.0% for Year 1. 
C)119.4% for Year 2 and 100.0% for Year 1. 
D)117.2% for Year 2 and 100.0% for Year 1. 
E)65.1% for Year 2 and 64.6% for Year 1.

Quizplus · Accepted Answer

Trend percentages are calculated by taking the figure for the base year as 100% and comparing subsequent years' figures against this. Since Year 1 is the base, its trend percentage is 100%. Year 2's percentage is higher or lower based on its performance relative to Year 1, making option C correct with Year 1 at 100% and Year 2 at 119.4%.

Use the Following Selected Information from Whitman Corp