Deere \& Company manufactures, distributes, and finances a full range of agricultural equipment; a broad range of industrial equipment for construction, forestry, and public works; and a variety of lawn and grounds care equipment. The company also provides credit, health care, and insurance products for businesses and the general public. Consider the following information from the Deere \& Company 1995 Annual Report:

a. Prepare a statement showing the trend percentages for each item using 1992 as the base year.

b. Comment on the trends noted.

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(in millions) 1992 1993 1994 1995 Sales. $6,961 $7,696 $8,977 $10,291 Cost of goods sold. 4,892 5,369 6,020 6,922 Gross margin $2,069 $2,327 $2,957 $ 3,369 Operating expenses 2,025 2,055 2,036 2,276 Net operating income. $ 44 $ 272 $ 921 $ 1,093