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Rotorua Products, Ltd., of New Zealand markets agricultural products for the burgeoning Asian consumer market. The company's current assets, current liabilities, and sales over the

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Rotorua Products, Ltd., 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: Sales Cash Accounts receivable, net Inventory Total current assets Current abilities Year 1 $4,639,500 $ 87,794 416,198 813,815 $1,317,807 $ 300,554 Year 2 $4,727,630 $ 103, 708 421,568 878, 713 $1,403,989 $ 349,632 Year 3 $4,999, 720 $ 102,209 432,786 835, 780 $1,370,775 $ 324,702 Year 4 $5,511,770 $ 81,600 514,037 896,129 $1,491,766 $ 336,776 Year 5 $5,790,680 $ 83,948 562,326 902, 422 $1,548,696 $ 408,697 Required: 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 (.e., 0.1234 should be entered as 12.3).) Year 1 Year 2 Year 3 Year 4 Year 5 % % Sales Current assets Cash Accounts receivable Inventory Total current assets Current liabilities % % % % % % % % % % % % % % % % % % % % % A comparative Income statement is given below for McKenzie Sales, Ltd. of Toronto: Last Year $5,586,000 3,513,500 2,072,500 McKenzie Sales, Ltd. Comparative Income Statement This Year Sales $7,350,000 Cost of goods sold 4,620,000 Gross margin 2,730,000 Selling and administrative expenses Selling expenses 1,375,000 Administrative expenses 706,500 Total expenses 2,081,500 Net operating income 648,500 Interest expense 106,000 Net income before taxes $ 542,500 1,075,000 611,000 1,686,000 386,500 93,000 $ 293,500 . Members of the company's board of directors are surprised to see that net income increased by only $249,000 when sales increased by $1764,000 Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (le, 0.1234 should be entered as 12.3).) rences This Year Last Year % % % 0,0% 0,0% Sales Cost of goods sold Gross margin Seling and administrative expenses Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Inverent expense Net income before taxes % 0.01% 0.01% 0.01% 0.0 % 00 00

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