For the following problems, use this information from Thompson Corporation’s ann
ID: 330257 • Letter: F
Question
For the following problems, use this information from Thompson Corporation’s annual reports:
Column1
Revenue
Employees
Year
($million)
2003
28.5
187
2004
34.3
206
2005
48.0
276
2006
63.4
316
2007
72.5
319
2008
82.5
323
2009
53.7
278
2010
48.9
287
2011
46.5
264
2012
46.7
258
2013
46.0
244
2014
47.2
262
2015
55.8
294
2016
62.4
306
These data are included in the file Thompson Data.
1) Compute a simple index for the revenue of Thompson. Use 2003 as the base period. What can you conclude about the change in revenue over the period?
2) Compute a simple index for the revenue of Thompson using the period 2003–05 as the base. What can you conclude about the change in revenue over the period?
3) Compute a simple index for the number of employees for Thompson. Use 2003 as the base period. What can you conclude about the change in the number of employees over the period?
4) Compute a simple index for the number of employees for Thompson using the period 2003–05 as the base. What can you conclude about the change in the number of employees over the period?
For the following problems, use this information from Thompson Corporation’s annual reports:
Column1
Revenue
Employees
Year
($million)
2003
28.5
187
2004
34.3
206
2005
48.0
276
2006
63.4
316
2007
72.5
319
2008
82.5
323
2009
53.7
278
2010
48.9
287
2011
46.5
264
2012
46.7
258
2013
46.0
244
2014
47.2
262
2015
55.8
294
2016
62.4
306
These data are included in the file Thompson Data.
1) Compute a simple index for the revenue of Thompson. Use 2003 as the base period. What can you conclude about the change in revenue over the period?
2) Compute a simple index for the revenue of Thompson using the period 2003–05 as the base. What can you conclude about the change in revenue over the period?
3) Compute a simple index for the number of employees for Thompson. Use 2003 as the base period. What can you conclude about the change in the number of employees over the period?
4) Compute a simple index for the number of employees for Thompson using the period 2003–05 as the base. What can you conclude about the change in the number of employees over the period?
Explanation / Answer
The calculations are shown in the excel sheet
Formula in Excel
1.The revenue index for 2003 was 100 and in 2016 it is 218.95 so change in revenue index = 218.95-100= 118.95
That means there is a 118.95 % increase in yearly revenues from 2003 to 2016
Average percentage increase per year = 8.46%
2. When we take our base year 2003-05 we calculate the mean revenue of the three years and this would be used to calculate the simple index.You can note that when we take the index no average of these 3 years i.e. average(77.17,92.87,129.96) it will come as 100.In this case, as we can see from the calculation the change in revenue percentage would be 168.95-100 = 68.95%
so, in this case, the percentage increase in revenue decreases drastically
3.The percentage increase in the number of employees =163.64-100= 63.64%
4.The percentage increase in the number of employees =137.22-100= 37.22% over the year
Comment if you have any doubt.
Column1 Revenue Employees Simple index of revenue with base 2003 Simple index of revenue with base 2003-2005 Simple index of Employees with base 2003 Simple index of Employees with base 2003-05 Year ($million) 2003 28.5 187 100.00 77.17 100.00 83.86 2004 34.3 206 120.35 92.87 110.16 92.38 2005 48 276 168.42 129.96 147.59 123.77 2006 63.4 316 222.46 171.66 168.98 141.70 2007 72.5 319 254.39 196.30 170.59 143.05 2008 82.5 323 289.47 223.38 172.73 144.84 2009 53.7 278 188.42 145.40 148.66 124.66 2010 48.9 287 171.58 132.40 153.48 128.70 2011 46.5 264 163.16 125.90 141.18 118.39 2012 46.7 258 163.86 126.44 137.97 115.70 2013 46 244 161.40 124.55 130.48 109.42 2014 47.2 262 165.61 127.80 140.11 117.49 2015 55.8 294 195.79 151.08 157.22 131.84 2016 62.4 306 218.95 168.95 163.64 137.22Related Questions
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