Calculate the Percent Increase or Decrease for Each of the Following

question 44

Essay

Calculate the percent increase or decrease for each of the following financial statement items:
$$\begin{array} { | l | r | r | } \hline & \text { Year 2 } & \text { Year 1 } \\\hline \text { Cash } & \$ 37,500 & \$ 30,000 \\\hline \text { Accounts receivable } & 63,000 & 52,500 \\\hline \text { Inventory } & 67,500 & 90,000 \\\hline \text { Accounts payable } & 35,100 & 27,000 \\\hline \text { Sales } & 187,500 & 150,000 \\\hline \text { Equipment } & 165,000 & 125,000 \\\hline\end{array}$$

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Definitions:

Yield To Maturity

the total return anticipated on a bond if the bond is held until it matures, considering both interest payments and capital gain.

10 ½% Bond

A bond that pays an annual interest rate of ten and a half percent of its face value.

Yield To Maturity

The total return anticipated on a bond if it is held until its maturity date.

8 ½% Bond

A bond that pays an annual interest rate of 8.5% on its face value.