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Question - The following information has been gathered for Kermit Industries Limited:
2020
2019
2018
2017
2016
Sales
$374,900
$360,000
$354,000
$386,500
$375,000
Accounts receivable
$20,500
$19,600
$19,400
$18,000
$19,500
Required - Calculate horizontal trend percentages using 2016 as the base year. Does the horizontal analysis show a favourable or unfavourable trend for sales? Why?
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