Boone Trading Company reported net sales of $400,000, $440,000, and $560,000 in the years 2016, 2017, and 2018, respectively. If 2016 is the base year, what is the trend percentage for 2018?
A) 71%
B) 127%
C) 140%
D) 110%

Question

Quizplus · Accepted Answer

To find the trend percentage for 2018, we need to first find the trend.

Trend for 2017 = (440,000 - 400,000)/400,000 * 100 = 10%
Trend for 2018 = (560,000 - 400,000)/400,000 * 100 = 40%

The trend percentage for 2018 is calculated as follows:

Trend percentage for 2018 = (Net sales in 2018 - Net sales in 2016)/Net sales in 2016 * 100

= (560,000 - 400,000)/400,000 * 100 = 40%

Using the base year of 2016, the net sales increased by 40% in 2018. Therefore, the answer is choice C (140%).

Boone Trading Company Reported Net Sales of $400,000, $440,000, and $560,000