Compute "trend percentages" for the following items taken fromthe financial statements over a five year period. Treat 2003as the base year. State whether the trends are favorable orunfavorable. (Dollars amounts are stated in thousands)

2007 2006 2005 2004 2003

Sales............................................$81,400 $74,000 $61,500 $59,000 $50,000

Cost of goods sold....................... 58,500 48,000 40,500 37,000 30,000