ED-16 Computing trend analysis Grand Oaks Realty\'s net revenue and net income f

Question

ED-16 Computing trend analysis

Grand Oaks Realty's net revenue and net income for the following five-year period, using 2013 as the base year, follow"

Requirements:

1. Compute a trend analysis for net revenue and net income. Round to the nearest full percent.

2. Which grew faster during the period, net revenue or net income?

*hint: 2017 Net Income 166%

Please list the step by step process, thank you

2017 2016 2015 2014 2013 Net Revenue $1,315,000 $1,188,000 $1,160,000 $1,011,000 $1,038,000 Net Income 126,000 115,000 82,000 77,000 76,000

Explanation / Answer

Trend analysis for net revenue = 1188000 - 1315000 / 2503000

= 5%

Trend analysis for net income = 115000 - 126000 / 241000 = 4.56%

2. net income for 2017 is 166%

2013: net income 76000 100%

2017 net income 126000 166%

assume net revenue for 2017 is 166%`then

2013 net revenue 1038000 100%

2017 net income 1315000 below 166%

so, net income is grow faster during the period.

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