Compute trend analysis for analysis financial statement

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Computation of trend analysis for analysis financial statement.

The purpose of this assignment is to compute a trend analysis and interpret the results. The following sales and accounts receivable information is available for the Partridge Pear Tree Company.

 

2005

2006

2007

Net Sales

$112,000

$136,000

$158,000

Accounts Receivable (net)

$21,000

$32,000

$43,000

Using 2005 as the base year, prepare a trend analysis on the above data and tell whether the results suggest a favorable or unfavorable trend and why. You may round your answer to one decimal point in making your analysis.

Reference no: EM1314651

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