You have prepared a trend series for Company XYZ for three years, 2004-2006 inclusive, using 2004 as the base year. Below are selected data.
$\begin{array}{lccc}
& 2004 & 2005 & 2006 \
\text { Sales } & 100 & 120 & 135 \
\text { Net Income } & 99 & 118 & 128 \
\text { Total Assets } & 100 & 119 & 130
\end{array}$
-From the above information, you can infer that:
A)rate of sales growth has decreased.
B)net income to sales (return on sales) is increasing over time.
C)asset turnover is decreasing over time.
D)None of the above

Question

You have prepared a trend series for Company XYZ for three years, 2004-2006 inclusive, using 2004 as the base year. Below are selected data.
$\begin{array}{lccc} 
& 2004 & 2005 & 2006 \
\text { Sales } & 100 & 120 & 135 \
\text { Net Income } & 99 & 118 & 128 \
\text { Total Assets } & 100 & 119 & 130
\end{array}$
-From the above information, you can infer that:
A)rate of sales growth has decreased.
B)net income to sales (return on sales) is increasing over time.
C)asset turnover is decreasing over time.
D)None of the above

Quizplus · Accepted Answer

The Answer of You have prepared a trend series for Company XYZ for three years, 2004-2006 inclusive, using 2004 as the base year. Below are selected data.
$\begin{array}{lccc} 
& 2004 & 2005 & 2006 \
\text { Sales } & 100 & 120 & 135 \
\text { Net Income } & 99 & 118 & 128 \
\text { Total Assets } & 100 & 119 & 130
\end{array}$
-From the above information, you can infer that:
A)rate of sales growth has decreased.
B)net income to sales (return on sales) is increasing over time.
C)asset turnover is decreasing over time.
D)None of the above

You Have Prepared a Trend Series for Company XYZ for Three