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 were the trend percents for Years 2 and 3 compared to the base year?
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

The trend percent is calculated by dividing the sales of each year by the base year sales and then multiplying 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