Rotorua Products, Ltd., of New Zealand markets agricultural products for the bur
ID: 2396072 • Letter: R
Question
Rotorua Products, Ltd., of New Zealand markets agricultural products for the burgeoning Asian consumer market. The company’s current assets, current liabilities, and sales have been reported as follows over the last five years (Year 5 is the most recent year):
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 (i.e., 0.1234 should be entered as 12.3).)
Year 1 Year 2 Year 3 Year 4 Year 5 Sales $ 4,552,720 $ 4,771,320 $ 5,143,900 $ 5,467,740 $ 5,733,570 Cash $ 94,158 $ 104,222 $ 96,752 $ 84,732 $ 82,624 Accounts receivable, net 403,584 423,273 433,344 498,209 560,961 Inventory 812,324 879,146 821,096 899,728 908,215 Total current assets $ 1,310,066 $ 1,406,641 $ 1,351,192 $ 1,482,669 $ 1,551,800 Current liabilities $ 304,403 $ 347,411 $ 329,700 $ 324,386 $ 390,077Explanation / Answer
Trend Analysis: Year1 Year2 YEar3 Year4 Year5 Sales 100% 104.80% 112.99% 120.10% 125.94% Current assets: Cash 100% 110.69% 102.75% 89.99% 87.75% Accounts receivable 100% 104.88% 107.37% 123.45% 138.99% Inventory 100% 108.23% 101.08% 110.76% 111.80% Total Current assets 100% 107.37% 103.14% 113.18% 118.45% Current liabilities 100% 114.13% 108.31% 106.56% 128.14%
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