Question
Payne Company's sales and current assets have been reported as follows over the last four years: Year 4 Year 3 Year 2 Year 1 Sales.................................
Payne Company's sales and current assets have been reported as follows over the last four years:
|
| Year 4 | Year 3 | Year 2 | Year 1 |
| Sales................................. | $810,000 | $720,000 | $630,000 | $600,000 |
| Cash................................. | $ 36,000 | $ 30,000 | $ 25,000 | $ 20,000 |
| Accounts receivable......... | 74,000 | 60,000 | 59,200 | 50,000 |
| Inventory......................... | 77,800 | 72,000 | 90,000 | 80,000 |
| Prepaid expenses.............. | 46,200 | 38,000 | 10,800 | 30,000 |
| Total current assets.......... | $234,000 | $200,000 | $185,000 | $180,000 |
Suppose that Payne Company employs trend percentages to analyze performance with Year 1 as the base year. Sales for Year 4 expressed as a trend percentage would be closest to:
Question 18 options:
| 128.6% |
| 74.1% |
| 112.5% |
| 135.0% |
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