Question
Sales, expenses, and net profit statistics of ABC Ltd for the years 2022 to 2025 are as follows: 2022 2023 2024 2025 $ $ $
Sales, expenses, and net profit statistics of ABC Ltd for the years 2022 to 2025 are as follows:
2022 | 2023 | 2024 | 2025 | |
$ | $ | $ | $ | |
Sales revenue | 130 000 | 140 000 | 150 000 | 140 000 |
Expenses Net profit | 102 000 28 000 | 110 000 30 000 | 118 000 32 000 | 111 000 29 000 |
- Calculate the trends in sales, expenses, and net profit using 2022 as the base year. Explain the trends emerging from these figures.
2022 | 2023 | 2024 | 2025 | ||||
$ | % | $ | % | $ | % | $ | % |
Sales | 130 000 | 100 | 140 000 | 150 000 | 140 000 | ||
Expenses | 102 000 | 100 | 110 000 | 118 000 | 111 000 | ||
Net Profit | 28 000 | 100 | 30 000 | 32 000 | 29 000 | ||
Trends:
Sales increased in 2023 compared to 2022 with a further increase in 2024 but fell back to 2023 level in 2025. Expenses also rose in all years compared to 2013 except that in 2016 there was a slight drop but still 8.82% above the 2022 figure. The percentage net profit in each year had been higher than that in 2022 year. The net profit in 2025 is not as good as those in 2023 or 2024. |
- Prepare a forecast of sales (rounded to the nearest hundred dollars), expenses, and net profit in 2026 assuming that a similar change will occur as between 2024 and 2025.
Forecast for 2026 | ||||
2024 $ | 2025 $ | Difference (%) | 2026 $ | |
Sales | 150 000 | 140 000 | ||
Expenses | 118 000 | 111 000 | ||
Net profit | 32 000 | 29 000 | ||
Step by Step Solution
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Financial Accounting
Authors: Jan Williams, Susan Haka
17th Edition
126000645X, 9781260006452
