The Following Selected Amounts Were Extracted from the Financial Statements

question 155

Essay

The following selected amounts were extracted from the financial statements of Flamingo Corporation.
$\begin{array}{lrrrr} & \text { Year 4 } & \text { Year 3 } & \text { Year 2 } & \text { Year 1 } \\\text { Net sales }& \$ 175,000 & \$ 170,000 & \$ 165,000 & \$ 150,000 \\\text { Cost of goods sold } & 109,000 & 104,500 & 100,500 & 93,000 \\ \text { Gross margin }&66,000 & 65,500 & 64,500 & 57,000\end{array}$
Prepare a trend analysis for net sales,cost of goods sold,and gross margin.(Round answers to the nearest tenth of 1 percent.)Use Year 1 as the base year.

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Definitions:

Unemployment Rate

The rate at which individuals in the labor force are unemployed and actively looking for a job.

Disinflation

A decrease in the rate of inflation, indicating a slowdown in the rate at which prices for goods and services are rising.

Nominal Interest Rates

The reported percentage rate without adjusting for the inflation rate, reflecting the cost of borrowing money.

Unemployment

The situation where individuals who are able and willing to work are unable to find a job, expressed as a percentage of the labor force.