Question

Rotorua Products, Ltd., of New Zealand markets agricultural products for the burgeoning Asian consumer market. The company’s current assets, current liabilities, and sales over the last five years (Year 5 is the most recent year) are as follows:

	Year 1			Year 2			Year 3			Year 4			Year 5
Sales	$	4,596,790		$	4,877,280		$	5,081,070		$	5,579,050		$	5,730,440
Cash	$	90,522		$	100,232		$	98,798		$	83,436		$	70,488
Accounts receivable, net		403,507			435,552			437,824			500,154			565,549
Inventory		817,912			865,524			835,413			895,568			896,104
Total current assets	$	1,311,941		$	1,401,308		$	1,372,035		$	1,479,158		$	1,532,141
Current liabilities	$	302,832		$	340,182		$	342,247		$	335,035		$	398,577

Required:

1. Express all of the asset, liability, and sales data in trend percentages. Use Year 1 as the base year. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)

Answer 1

	Year 1	Year 2	Year 3	Year 4	Year 5
Sales	100.0%	106.1%	110.5%	121.4%	124.7%
Cash	100.0%	110.7%	109.1%	92.2%	77.9%
Accounts receivable, net	100.0%	107.9%	108.5%	124.0%	140.2%
Inventory	100.0%	105.8%	102.1%	109.5%	109.6%
Total current assets	100.0%	106.8%	104.6%	112.7%	116.8%
Current liabilities	100.0%	112.3%	113.0%	110.6%	131.6%

Percentage calculation = Current Year (Year 2, Year 3, Year 4, Year 5) / Base Year (Year 1)