Question

E15-16 Computing trend analysis Learning Objective 2 1. 2017 Net Income 166% Grand Oaks Realty's net revenue and net income for the following five-year period, using 2013 as the base year, follow: 2015 2014 2013 Net Revenue Net Income 2017 $ 1,315,000 126,000 2016 $1,188,000 115,000 $1,160,000 82.000 $1,011,000 77.000 $ 1,038,000 76.000 Copyright © 2016 Pearson Education, Inc. Requirements 1. Compute a trend analysis for net revenue and net income. Round to the nearest full percent. 2. Which grew faster during the period, net revenue or net income?

Answer 1

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Net Revenue Net Income 2017 1,315,000 126,000 2016 1,188,000 115,000 2015 1,160,000 82,000 2014 1,011,000 77,000 2013 1,038,000 76,000 % of Trend taking 2013 as Base Year Change in Revenue Change in Net Income 277,000 50,000 150,000 39,000 122,000 6,000 (27,000) 1,000 Trend in Revenue % Trend in Net Income % 127 166 114 151 112 108 97 101 100 100 Change in Trend In Revenue In Net Income 12.24 14.47 2.70 43.42 14.35 6.58 (2.60) 1.32 The Faster grew one during the period is Net Income because it has increased quickly from 108% to 151%.