A trend analysis compares amounts of a more recent year to a base year. The base year is the earliest year being studied. The analysis measures the percentage of change from the base year. 91 Use the amounts listed below to complete the trend indexes for Totol expenses and Net income. Divide each amount by the amount of the base year and multiply by 100. Record the resulting trend index in the shaded area. Use 2005 as the base year. PEPSICO 2008 2007 2006 Base Year $ in millions) 2005 Sales revenue $43.251 133 $39,474 121 $35,137 108 $32,562 100 Total expenses $38.109 $33,816 $29,495 $28,484 Net Income $ 5,142 $ 5,658 $ 5,642 $ 4,078 From 2005 to 2008 sales growth for PepsiCo was 33%. During the same period, total expenses increased _%. When net sales increase, expenses would be expected to increase / stay the same / decrease). It is favorable when sales increase by 33% and expenses increase at a (greater / lesser) rate than 33%. From 2005 to 2008 (revenues / expenses) of PepsiCo increased at a greater rate, which is favorable / unfavorable) Q3 Assume PepsiCo had a goal of increasing profits by 5% each year. This goal was (met/ not met). Q4 The best year financially for PepsiCo was (2008/2007 / 2006). Why? Q2 The worst year financially for PepsiCo was (2008 / 2007/2006). Why