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

Year salesstockprofit before tax
20001,500  700300
20012,140   780450
20022,365   820480
20033,020   930530
20043,5001,160660
20054,0001,200700

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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.

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