Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 trend percentages for net sales using 2016 as the base. $$\begin{array} { | l | r | r | }
\hline & { \mathbf { 2 0 1 7 } } &{ \mathbf { 2 0 1 6 } } \
\hline \text { Net sales } & \$ 276,200 & \$ 231,400 \
\hline \text { Cost of goods sold } & 151,900 & 129,590 \
\hline \text { Operating expenses } & 55,240 & 53,240 \
\hline \text { Net earnings } & 27,820 & 19,820 \
\hline
\end{array}$$
A) 117.2% for 2017 and 100.0% for 2016.
B) 55.0% for 2017 and 56.0% for 2016.
C) 65.1% for 2017 and 64.6% for 2016.
D) 36.4% for 2017 and 41.1% for 2016.
E) 119.4% for 2017 and 100.0% for 2016.

Question

Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 trend percentages for net sales using 2016 as the base. $$\begin{array} { | l | r | r | } 
\hline & { \mathbf { 2 0 1 7 } } &{ \mathbf { 2 0 1 6 } } \
\hline \text { Net sales } & \$ 276,200 & \$ 231,400 \
\hline \text { Cost of goods sold } & 151,900 & 129,590 \
\hline \text { Operating expenses } & 55,240 & 53,240 \
\hline \text { Net earnings } & 27,820 & 19,820 \
\hline
\end{array}$$
A) 117.2% for 2017 and 100.0% for 2016.
B) 55.0% for 2017 and 56.0% for 2016.
C) 65.1% for 2017 and 64.6% for 2016.
D) 36.4% for 2017 and 41.1% for 2016.
E) 119.4% for 2017 and 100.0% for 2016.

Quizplus · Accepted Answer

The trend percentage is calculated by taking the current year net sales and dividing it by the base year net sales (in this case, 2016). Then, multiply by 100 to get a percentage.
For 2017: 
Net sales for 2017 = $1,026,000 
Trend percentage = (Net sales for 2017 ÷ Net sales for 2016) x 100% 
= ($1,026,000 ÷ $861,000) x 100% 
= 119.4%
For 2016: 
Net sales for 2016 = $861,000 
Trend percentage = (Net sales for 2016 ÷ Net sales for 2016) x 100% 
= 100.0% 
Therefore, the answer is E) 119.4% for 2017 and 100.0% for 2016.

Use the Following Selected Information from Wheeler, LLC to Determine