Horizontal analysis (Learning Objective 2) 15–20 min.

Below are net sales and net income data for a five-year period.

Net Sales.................

Net Income .............

$2,714 660 Year 5

$2,530 630 Year 4

$2,392 612 Year 3

$2,346 606 Year 2

$2,300 600 Year 1 Requirements 1. Compute trend percentages for net sales and net income for the five-year period, using year 1 as the base year.

2. Which grew faster during the period, net sales or net income?

AppendixLO1