Statement of Profit or Loss for years 2016 to 2019 Year 2019		Year 2018		Year 2017		Year 2016
$		$		$		$
Sales revenue	1,095,910		1,060,900		1,030,000		1,000,000
Less: Cost of goods sold	(895,358)		(866,755)		(842,540)		(820,000)
Gross profit	200,552		194,145		187,460		180,000
Other operating expenses	(162,877)		(161,827)		(160,900)		(160,000)
Income before tax	37,675		32,318		26,560		20,000
Less: Income tax expense	(3,768)		(3,232)		(2,656)		(2,000)
Net income	33,907		29,086		23,904		18,000

Required:

1. Compute the index-number trend percentages for the accounts below in all years, using 2016 as the base period.

1. Sales revenue;
2. Gross profit;
3. Other operating expenses; and
4. Net income. . (16 marks)

2. For items (i) and (iv) in Part (a) above, analyze the trend, the observed results, and the likely reason(s) behind respectively.