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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:
Problem 1: 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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