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Rotorua Products, Ltd., of New Zealand markets agricultural products for the bur

ID: 2497334 • 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).)


  

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):

Explanation / Answer

Solution:

solution

Year 1   

Year 2   

Year 3   

Year 4   

Year 5      

  Sales

                 100.0

                 103.0

                 110.0

                 119.8

                 125.1

    Cash

                 100.0

                    92.5

                 103.8

                    75.8

                    82.8

    Accounts receivable, net

                 100.0

                 107.6

                 111.9

                 123.4

                 141.3

    Inventory

                 100.0

                 106.4

                 100.3

                 109.6

                 109.7

  Total current assets

                 100.0

                 105.7

                 104.1

                 111.3

                 117.3

  Current liabilities

                 100.0

                 108.9

                 110.0

                 102.1

                 129.0

formula = concerned year amount *100/base year amount

solution

Year 1   

Year 2   

Year 3   

Year 4   

Year 5      

  Sales

                 100.0

                 103.0

                 110.0

                 119.8

                 125.1

    Cash

                 100.0

                    92.5

                 103.8

                    75.8

                    82.8

    Accounts receivable, net

                 100.0

                 107.6

                 111.9

                 123.4

                 141.3

    Inventory

                 100.0

                 106.4

                 100.3

                 109.6

                 109.7

  Total current assets

                 100.0

                 105.7

                 104.1

                 111.3

                 117.3

  Current liabilities

                 100.0

                 108.9

                 110.0

                 102.1

                 129.0