Question 5:

Exercise 179

The following items were taken from the financial statements of Rug, Inc., over a four-year period:

Item		2018		2017		2016		2015
Net Sales		$900,000		$650,000		$600,000		$500,000
Cost of Goods Sold		580,000		460,000		420,000		400,000
Gross Profit		$320,000		$190,000		$180,000		$100,000

Using horizontal analysis and 2015 as the base year, compute the trend percentages for net sales, cost of goods sold, and gross profit. Indicate whether the trends are favorable or unfavorable for each item

Item	2018	2017	2016	2015	Favorable or Unfavorable
Net Sales	%	%	%	%
Cost of Goods Sold	%	%	%	%
Gross Profit	%	%	%	%

Please show your work so I can study the material! Thank you!