Boone Trading Company reported net sales of $400000 $440000 and $560000 in the years 2020 2021 and 2022 respectively.If 2020 is the base year what is the trend percentage for 2022?

Question

Quizplus · Accepted Answer

To calculate trend percentage, we need to use the formula:

[(Current year's net sales / Base year's net sales) - 1] x 100

Using the given numbers:

For 2020 (Base year): 
Trend percentage = [(400000/400000) - 1] x 100 = 0%

For 2021: 
Trend percentage = [(440000/400000) - 1] x 100 = 10%

For 2022: 
Trend percentage = [(560000/400000) - 1] x 100 = 40%

Therefore, the trend percentage for 2022 is 40%. The closest choice is C (140%), which is the correct answer.

Boone Trading Company Reported Net Sales of $400000 $440000 and $560000