Question

Ash Company reported sales of $550,000 for Year 1, $600,000 for Year 2, and $650,000 for Year 3. Using Year 1 as the base year, what is the revenue trend percent for Years 2 and 3

Answer 1

1. 109.1%

2. 118.2%

Step-by-step explanation:

With regards to the above, since revenue is increasing and also since year 2 and year 3 have higher revenues than year 1,

Therefore,

Year 2 = ( $600,000 / $550,000 ) * 100

= 109.1%

Revenue trend percent for year 2 is 109.1%

Year 2 = ( $650,000 / $550,000) * 100

= 118.2%

Revenue trend percent for year 3 is 118.2%