Exercise 14-7 (Algo) Trend Percentages [LO14-1] Rotorua Products, Limited, of New Zealand markets agricultural products for the burgeoning Asian consumer market. The company's current assets, current liabilities, and sales over the last five years (Year 5 is the most recent year) are as follows: k Sales Cash Accounts receivable, net Inventory ices Total current assets Current liabilities Required: Year 1 $ 4,550,020 Year 2 $ 4,737,030 $ 92,840 401,031 819,906 $88,259 418,847 870,316 $ 1,313,777 $315,996 $ 1,377,422 $341,645 Year 3 $ 5,087,180 $ 87,233 432,201 825,685 $ 1,345,119 $343,224 Year 4 $ 5,494,200 $ 88,134 496, 808 899,107 $ 1,484,049 $ 321,302 Year 5 $ 5,663,130 $ 74,966 571,827 914,471 $ 1,561,264 $ 403,925 1. Express all of the asset, liability, and sales data in trend percentages. Use Year 1 as the base year. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Year 1 Year 2 Year 3 Year 4 Year 5 Sales 16 " " Current assets Cash 16 % " 16 16 Accounts receivable, net 26 96 56 14 Inventory 56 96. 16 16 Total current assets % 96 E Current liabilities 56 96 56 % Comparative Income Statement This Year Sales $ 7,330,000 Cost of goods sold. 4,670,000 Gross margin 2,660,000 Selling and administrative expenses: Administrative expenses 1,381,000 707,000 Last Year $ 5,570,800 3,506,500 2,064, 300 1,081,500 617,500 2,088,000 1,699,000 Interest expense. 572,000 98,000 $ 474,000 365,300 91,000 $274,300 Selling expenses Total expenses. Net operating income Net income before taxes Members of the company's board of directors are surprised to see that net income increased by only $199,700 when sales increased by $1,759,200. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) This Year Last Year Sales Cost of goods sold Gross margin Selling and administrative expenses: 96 % % % 0.0 % 0.0 % Selling expenses 96 96 Administrative expenses % % Total selling and administrative expenses 0.0 % 0.0 % Net operating income 0.0 % 0.0 % Interest expense % 96 Net income before taxes) 0.0 % 0.0 %