Exercise 13-3 (Algo) Computing and analyzing trend percents LO P1 Sales Cost of goods sold Accounts receivable 2021 $579,696 292,398 28,173 2020 $ 381,379 192,290 22,234 2019 $ 303,888 155,094 20,786 2018 $207,432 2017 105,366 12,156 $ 154,800 77,400 10,573 Compute trend percents for the above accounts, using 2017 as the base year. For each of the three accounts, state wheth situation as revealed by the trend percents appears to be favorable or unfavorable. Trend Percent for Net Sales: Numerator: Denominator: Base year net sales 2021: 2020: 2019: 2018: 2017: Trend percent 0% 0% 0 % 0% 0% Is the trend percent for Net Sales favorable or unfavorable? Favorable Trend Percent for Cost of Goods Sold: Numerator: Denominator: Trend percent 2021: 2020: 2019: 2018: 0% 0% 0 % 0 % 0% 2019: 2018: 2017: 0% 0% Favorable Is the trend percent for Net Sales favorable or unfavorable? Numerator: Trend Percent for Cost of Goods Sold: Denominator: Trend percent 0% 2021: 2020: 2019: 2018: 0% 0% 0% 2017: Is the trend percent for Cost of Goods Sold favorable or unfavorable? 0% Unfavorable Trend Percent for Accounts Receivable: Numerator: Denominator: Trend percent 2021: 2020: 2019: 2018: 2017: 0% 0% 0% 11 " 0% 0% Is the trend percent for Accounts Receivable favorable or unfavorable? Unfavorable QS 13-4 (Algo) Horizontal analysis LO P1 Compute the annual dollar changes and percent changes for each of the following accounts. (Decreases should be indicated with a minus sign. Round percent change to one decimal place.) Short-term investments Accounts receivable Notes payable Current Year Prior Year $ 376,765 99,717 $235,858 103,183 90,168 Answer is not complete. Horizontal Analysis Calculation of Percent Change Numerator: Denominator: Percent Change= Current year minus base year Base year amount Current Year Prior Year Dollar Change Percent Change Short-term investments 376,765 S Accounts receivable 99,717 235.858 103,183 S 140,907 62.0 % (3,466) % Notes payable 0 90,168 (90,168) %