Assume that the accounts receivable balances are $110,000,$112,000 and $116,000 for 2011,2012,and 2013,respectively.The trend percentage for 2013 is
A)3.6%.
B)5.5%.
C)103.6%.
D)105.5%.

Question

Quizplus · Accepted Answer

To calculate the trend percentage for 2013, we need to find the percentage change from 2012 to 2013 using the following formula:

Trend percentage = [(2013 value - 2012 value)/2012 value] x 100%

Substituting the values given, we get:

Trend percentage = [(116,000 - 112,000)/112,000] x 100%
Trend percentage = (4,000/112,000) x 100%
Trend percentage = 3.57%

Rounding off to one decimal place, we get the answer as 3.6%. However, we need to add this percentage to 100% to get the actual trend percentage for 2013.

Therefore, the trend percentage for 2013 is:

Trend percentage = 100% + 3.6%
Trend percentage = 103.6%

The closest choice to this answer is D.

Assume That the Accounts Receivable Balances Are $110,000,$112,000 and $116,000