You have the following information about the sales revenue, cost of sales, and accounts receivable for six consecutive periods for a small to midsize catering service. Generally, they are paid by check or cash and also extend 15-day accounts receivable credit to selected organizations.

For each of the three items, calculate trend percentages. Using the results from this analysis, discuss whether the situation developing for the catering service is desirable.LO1

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Food Sales Accounts Period Revenue Food Cost Receivable 123 $210,200 $60,330 $20,020 $233,322 $72,275 $24,200 3 $243,821 $81,400 $25,800 4 $253,574 $84,200 $27,400 5 $267,521 $90,768 $31,400 6 $273,406 $93,128 $33,600