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Question 1: 6 marks) (a) Explain what is meant by trend analysis. (3 marks) Answer: Trend analysis is a technique for evaluating a series of
Question 1: 6 marks) (a) Explain what is meant by trend analysis. (3 marks) Answer: Trend analysis is a technique for evaluating a series of data over a period of time to determine the increase or decrease that has taken place, expressed as either an amount or a percentage. (b) Comparative information taken from the ADIB Bank financial statements is shown below:(3 marks) 2019 2018 (a) Accounts receivable $ 20,000 $ -0- (b) Inventory 182,000 140,000 (C) Net Income 30,000 (40,000) (d) Account payable 44,000 20,000 (e) Service Revenue 960,000 750,000 (f) Administrative and Marketing expenses 170,000 200,000 Instructions Using horizontal analysis, show the percentage change from 2018 to 2019 with 2018 as the base year. Answer: Question 4: Explain what is meant by Cost-Volume-Profit analysis and why is it important? (3 + 6 marks = 9 marks)
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