FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:A.2 Starkey Company's sales, current assets, and current liabilities (all in
thousands of dollars) have reported as follow over the last five years (Year 5
is the most recent year):
Sales
Current assets:
Cash
Accounts receivable
Inventory
Total current assets
Current liabilities
Required:
Year 5
$5,625
$
Year 4
$5,400
64 $
560
896
Year 3 Year 2
$4,950 $4,725
72 $ 84
496
880
$
88
416
864
Year 1
$ 4,500
80
432
400
816
800
$ 1,332 $1,368 $ 1,280
300
$1,520
$1,448
$ 390 $ 318 $ 324 $ 330 $
1. Express all of the asset, liability, and sales data in trend percentages.
(Show percentages for each item.) Use Year 1 as the base year, and
carry computations to one decimal place.
2. Comment the results of your analysis.
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