Prepare a Trend Analysis of the Following Data, Using Year

question 97

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.
$$\begin{array} { | l | l | l | l | } \hline & \text { Year 3 } & \text { Year 2} & \text { Year 1 } \\\hline \text { Net saes } & \$ 324,000 & \$ 330,000 & \$ 300,000 \\\hline \text { Net income } & 33,000 & 31,800 & 30,000 \\\hline & & & \\\end{array}$$ $\begin{array}{|l|l|l|l|}\hline & \text { Year 3 } & \text { Year 2 } & \text { Year 1 } \\\hline \text { Net sales } & & & \\\hline \text { Net income } & & & \\\hline\end{array}$

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Definitions:

Compounding Periods

The intervals at which interest is calculated and added to the account's balance in the context of investing or saving.

Variable-Rate Loan

A loan whose interest rate changes over the life of the loan.

Fixed-Rate Loan

A loan whose interest rate remains constant.

Floor Planning

A type of business loan generally made for “big-ticket” items. The business holds the item in inventory and pays interest, but it is actually owned by the lender until the item is sold.