Flaherty Corporation used data for 3 years to perform a trend analysis of its operating expenses, which were $54,305 in Year 1; $63,421 in Year 2 and $70,340 in Year 3. Using Year 1 as the base year, the operating expense trend percent (rounded to the nearest whole percent) for Year 2 is:
A)100%.
B)111%.
C)117%.
D)130%.
E)86%.

Question

Quizplus · Accepted Answer

The trend percent for Year 2 is calculated by dividing Year 2 expenses by Year 1 expenses and then multiplying by 100. ($63,421 / $54,305) * 100 = 117%.

Flaherty Corporation Used Data for 3 Years to Perform a Trend