Asked by Hassan ibrahim on May 07, 2024

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Ash Company reported sales of $400,000 for Year 1,$450,000 for Year 2,and $500,000 for Year 3.Using Year 1 as the base year,what is the revenue trend percent for Years 2 and 3?

A) 80% for Year 2 and 90% for Year 3.
B) 88% for Year 2 and 80% for Year 3.
C) 88% for Year 2 and 90% for Year 3.
D) 112.5% for Year 2 and 125% for Year 3.
E) 125% for Year 2 and 112.5% for Year 3.

Revenue Trend Percent

A metric that measures the rate of change in a company's revenue over a specific period, helping to understand growth patterns.

Base Year

A specific year against which economic or financial data is compared over a period of time.

Sales

The exchange of goods or services for money, measuring the primary revenue-generating activities of a business.

  • Analyze and expound on discrepancies and trends in the particulars of financial statements.
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JB
Jean Baptiste FamilyMay 11, 2024
Final Answer :
D
Explanation :
The revenue trend percent is calculated by dividing the revenue of the target year by the revenue of the base year and then multiplying by 100. For Year 2: ($450,000 / $400,000) * 100 = 112.5%. For Year 3: ($500,000 / $400,000) * 100 = 125%.