Use the following selected information from Farris, LLC to determine the Year 2 and Year 1 trend percents 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

Quizplus · Accepted Answer

Trend percent is calculated by dividing the analysis year amount by the base year amount and then multiplying by 100. Since Year 1 is the base, its trend percent is 100%. Year 2's trend percent indicates growth or decline relative to Year 1.

Use the Following Selected Information from Farris, LLC to Determine