Trend Percentages [LO1]

Starkey Company’s sales, current assets, and current liabilities (all in thousands of dollars) have been reported as follows over the last five years (Year 5 is the most recent year):

Year 5 Year 4 Year 3 Year 2 Year 1 Sales . . . . . . . . . . . . . . . . . . $5,625 $5,400 $4,950 $4,725 $4,500 Current assets:
Cash . . . . . . . . . . . . . . . . . $ 64 $ 72 $ 84 $ 88 $ 80 Accounts receivable . . . . . 560 496 432 416 400 Inventory . . . . . . . . . . . . . . 896 880 816 864 800 Total current assets . . . . . . . $1,520 $1,448 $1,332 $1,368 $1,280 Current liabilities . . . . . . . . . $ 390 $ 318 $ 324 $ 330 $ 300 Required:
1. Express all of the asset, liability, and sales data in trend percentages. (Show percentages for each item.) Use Year 1 as the base year, and carry computations to one decimal place.
2. Comment on t he r esults of your a nalysis.