Ash Company reported sales of $400,000 for Year 1, $450,000 for Year 2, and $500,000 for Year 1. Using Year 1 as the base year, what is the revenue trend percent for Years 2 and 3?

Question

Quizplus · Accepted Answer

To calculate the revenue trend percent, we need to use the following formula:

Revenue trend percent for a year = (Revenue for that year / Revenue in the base year) x 100%

Using Year 1 as the base year:

Revenue trend for Year 2 = (450,000 / 400,000) x 100% = 112.5%
Revenue trend for Year 3 = (500,000 / 400,000) x 100% = 125%

Therefore, the correct answer is D, 112.5% for Year 2 and 125% for Year 3.

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