Prepare a Trend Analysis of the Following Data Using Year

question 119

Essay

Prepare a trend analysis of the following data using Year 1 as the base year.Place your answers in the chart provided.Comment on the trend.
$$\begin{array}{l}\begin{array} { l l l } \end{array}\\\begin{array} {| l r r r| } \hline&\text { Year } 3 & \text { Year } 2 & \text { Year } 1\\\text { Net sales } & \$ 108,000 & \$ 10,000 & \$ 100,000 \\\text { Gross margin } & 61,040 & 58,800 & 56,000 \\\text { Net incume } & 9,600 & 10,800 & 10,000\\\hline\end{array}\end{array}$$
$\begin{array}{|l|l|l|l|} \hline& \text { Year 3 } & \text { Year 2 } & \text { Year 1 } \\\text { Net sales } & & & \\\text { Gross margin } & & & \\\text { Net income } & & & \\\hline\end{array}$

---

Definitions:

Free Cash Flow

The revenue a firm accrues post-deducting expenses associated with operational support and upkeep of its capital goods.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, often used in accounting to find the average cost of goods sold.

Free Cash Flow

The amount of cash that a company generates after accounting for cash outflows to support operations and maintain capital assets.

Stock Options

Financial instruments that give the holder the right, but not the obligation, to buy or sell shares of a stock at a specified price before a specified date.