Data for the most recent four fiscal years of Colt Corporation are given below:
$\begin{array}{lllll}&2017 & 2016 & 2015 & 2014 \
\text { Net Sales } & \$ 78,000 & 75,000 & \$ 67,000 & \$ 60,000 \
\text { Cost of goods sold } & 33,000 & 32,000 & 30,000 & 26,000 \
\text { Gross margin } & 45,000 & 43,000 & 37,000 & 34,000 \
\text { Operating expenses } & 25,000 & 22,000 & 19,000 & 14,000 \
\text { Net income } & 20,000 & 21,000 & 18,000 & 20,000
\end{array}$ a_Prepare an analysis showing the trend percentages for the four-year period using 2014 as the base year.
b_What do the trend percentages indicate regarding Colt Corporation's income statement data?

Question

Data for the most recent four fiscal years of Colt Corporation are given below:
 $\begin{array}{lllll}&2017 & 2016 & 2015 & 2014 \
\text { Net Sales } & \$ 78,000 & 75,000 & \$ 67,000 & \$ 60,000 \
\text { Cost of goods sold } & 33,000 & 32,000 & 30,000 & 26,000 \
\text { Gross margin } & 45,000 & 43,000 & 37,000 & 34,000 \
\text { Operating expenses } & 25,000 & 22,000 & 19,000 & 14,000 \
\text { Net income } & 20,000 & 21,000 & 18,000 & 20,000
\end{array}$ a_Prepare an analysis showing the trend percentages for the four-year period using 2014 as the base year.
b_What do the trend percentages indicate regarding Colt Corporation's income statement data?

Quizplus · Accepted Answer

The Answer of Data for the most recent four fiscal years of Colt Corporation are given below:
 $\begin{array}{lllll}&2017 & 2016 & 2015 & 2014 \
\text { Net Sales } & \$ 78,000 & 75,000 & \$ 67,000 & \$ 60,000 \
\text { Cost of goods sold } & 33,000 & 32,000 & 30,000 & 26,000 \
\text { Gross margin } & 45,000 & 43,000 & 37,000 & 34,000 \
\text { Operating expenses } & 25,000 & 22,000 & 19,000 & 14,000 \
\text { Net income } & 20,000 & 21,000 & 18,000 & 20,000
\end{array}$ a_Prepare an analysis showing the trend percentages for the four-year period using 2014 as the base year.
b_What do the trend percentages indicate regarding Colt Corporation's income statement data?

Data for the Most Recent Four Fiscal Years of Colt