Ash Company reported sales of $400,000 for Year 1,$450,000 for Year 2,and $500,000 for Year 3.Using Year 1 as the base year,what is the revenue trend percent for Years 2 and 3?
A)80% for Year 2 and 90% for Year 3.
B)88% for Year 2 and 80% for Year 3.
C)88% for Year 2 and 90% for Year 3.
D)112.5% for Year 2 and 125% for Year 3.
E)125% for Year 2 and 112.5% for Year 3.

Question

Quizplus · Accepted Answer

To calculate the revenue trend percent, divide the revenue of the target year by the revenue of the base year (Year 1) and multiply by 100. For Year 2: ($450,000 / $400,000) * 100 = 112.5%. For Year 3: ($500,000 / $400,000) * 100 = 125%.

Ash Company Reported Sales of $400,000 for Year 1,$450,000 for Year