Question

Calculate trend percentages from the following figures of ABC Limited, taking 2000 as base and interpret them.

Year	sales	stock	profit before tax
2000	1,500	700	300
2001	2,140	780	450
2002	2,365	820	480
2003	3,020	930	530
2004	3,500	1,160	660
2005	4,000	1,200	700

Answer 1

Interpretations

(i) Sales has exhibited continuous increasing trend over the period.

(ii) The value of stock also increases, with the increase in value of sales.

(iii) Profit increase more in earlier years as compare to later years. It implies cost of goods, sold and operating expenses are increased in later years.