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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.
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