For the Following Financial Statement Items,calculate Trend Percents Using 2007

question 172

Essay

For the following financial statement items,calculate trend percents using 2007 as the base year:
$$\begin{array} { | l | r | r | r | r | r | } \hline & { 2011 } & { 2010 } & { 2009 } & { 2008 } & { 2007 } \\\hline \text { Sales } & \$ 1,195,400 & \$ 1,118,000 & \$ 1,049,000 & \$ 963,200 & \$ 860,000 \\\hline \text { Cost of sales } & 752,400 & 704,000 & 671,000 & 6 1 6 , 7 0 0& 559,000 \\\hline \text { Gross profit } & \$ 443,000 & \$ 414,000 & \$ 378,000 & \$ 346,500 & \$ 301,000 \\\hline\end{array}$$

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Definitions:

U.S. Treasury Bills

Short-term government securities issued by the United States Department of the Treasury with maturity periods ranging from a few days to 52 weeks.

Common Stocks

Shares of ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends or stock appreciation.

Riskless Assets

Financial instruments that are considered to have a minimal possibility of default, often yielding a guaranteed, but lower, return.

Utility Function

A mathematical representation that ranks preferences of consumers by assigning a numerical value to each possible bundle of goods, indicating the level of satisfaction or utility derived.