Rotorua products, ltd., of new zealand markets agricultural products for the burgeoning asian consumer market. the company’s current assets, current liabilities, and sales over the last five years (year 5 is the most recent year) are as follows:

year 1 year 2 year 3 year 4 year 5
sales $ 4,539,770 $ 4,898,400 $ 5,083,390 $ 5,492,990 $ 5,796,610
cash $ 80,701 $ 106,917 $ 90,847 $ 72,725 $ 76,958
accounts receivable, net 418,624 430,931 448,168 501,061 572,699
inventory 800,711 867,178 834,459 880,216 909,440
total current assets $ 1,300,036 $ 1,405,026 $ 1,373,474 $ 1,454,002 $ 1,559,097
current liabilities $ 316,539 $ 343,508 $ 328,340 $ 333,975 $ 405,136

required:

1. express all of the asset, liability, and sales data in trend percentages. use year 1 as the base year. (round your percentage answers to 1 decimal place (i. e., 0.1234 should be entered as 12.

Trend Analysis helps to interpret the changes in account balances over certain period of time. Trends in percentages is presented in the table below.

* Excel solution is attached for your reference.

Explanation:

For Rotorua Product Ltd, data trends (in percentages) can be computed using the following formula:

                       Trend in % = (Current Year ÷ Base Year) × 100

                          where: Base Year is assumed to be Year 1

                                      Year 1Year 2  Year 3   Year 4     Year 5

Sales                                 100.0%107.9%     112.0%   121.0%     127.7%

Current Assets    

Cash                                   100.0%132.5%   112.6%     90.1%      95.4%

Accounts receivable, net   100.0%102.9%   107.1%     119.7%      136.8%

Inventory                           100.0%108.3%   104.2%     109.9%     113.6%

Total current assets           100.0%  108.1%    105.6%     111.8%      119.9%

Current liabilities                   100.0%108.5%   103.7%     105.5%      128.0%

answer; i believe its (d) intrinsic;

answer; post closing trial balance;