In a Trend Analysis,an Index Number of 139 for 20x5

question 110

Multiple Choice

In a trend analysis,an index number of 139 for 20x5 sales indicates that

• A)sales for 20x5 were 139 percent higher than sales for the same company in the base year.
• B)sales for 20x5 for this company were 139 percent of the sales figure of another company being used in the comparison.
• C)sales for 20x5 were 139 percent of the sales for the same company in the base year.
• D)actual sales for 20x5 exceeded budgeted sales for 20x5 by 39 percent.

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Definitions:

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.

Days' Sales Uncollected

A financial metric that measures how long it takes, on average, for a company to collect cash from its credit sales.

Profit Margin

A financial metric that measures the amount of net income earned with each dollar of sales generated by comparing the profit and the revenue.

Total Asset Turnover

A financial measure that calculates the ability of a company to turn its assets into sales revenue.