accounts case study 1

Sub-Subject: Accounts
Topic: Accounts


Step 1 : Find the percentage increase in net sales from Year 1 to Year 2
Percentage increase in net sales = [(Year 2 net sales - Year 1 net sales)/ Year 1 net sales] x 100%
= [(277,200 - 231,600)/ 231,600] x 100% = 19.71%
Explaination
To calculate the percentage increase, we need to find the difference between Year 2 net sales and
Year 1 net sales, divide that by Year 1 net sales, and then multiply by 100% to get the
percentage. This tells us how much net sales increased from Year 1 to Year 2 as a percentage of
Year 1 net sales.




Step 2: Calculate the Year 2 trend percentage for net sales using Year 1 as the base
Year 2 trend percentage = 100% + percentage increase = 100% + 19.71% = 119.71%
Explaination
The Year 2 trend percentage tells us how much higher Year 2 net sales are compared to Year 1
net sales, using Year 1 net sales as the baseline or starting point. To get this percentage, we add
the percentage increase we calculated in step 1 to 100%, since 100% represents Year 1 net sales.




Step 3: Calculate the Year 1 trend percentage for net sales using Year 1 as the base
Year 1 trend percentage = 100%
Explaination
The Year 1 trend percentage is simply 100%, since we are using Year 1 net sales as the baseline
or starting point. This means that there is no change in net sales from Year 1 to Year 1 - it stays
the same.


Final Answer:-
Therefore, the Year 2 trend percentage for net sales using Year 1 as the base is 119.71% and
the Year 1 trend percentage for net sales using Year 1 as the base is 100%.