Boone Trading Company reported net sales of $400,000, $440,000, and $560,000 in the years 2019, 2020, and 2021, respectively.If 2019 is the base year, what is the trend percentage for 2021?

Question

Quizplus · Accepted Answer

To calculate the trend percentage for 2021, we need to use the formula:

(Trend in 2021 / Base year amount) x 100

Where the trend in 2021 is the difference between the net sales in 2021 and the base year amount (2019).

Trend in 2021 = $560,000 - $400,000 = $160,000

Using the formula, we get:

(Trend in 2021 / Base year amount) x 100 = ($160,000 / $400,000) x 100 = 40%

Therefore, the trend percentage for 2021 is 40%.

To get the percentage increase from the base year to 2021, we add the trend percentage to 100%:

100% + 40% = 140%

Therefore, the net sales in 2021 increased by 140% from the base year (2019), which is the answer choice C.

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