Analyse the following table and prepare a trend analysis (one of the techniques used in financial\\nstatement analysis)

Year Deposits Advances Profit
1999 29585549 7829177 513011
2000 38345875 10115298 594580
2001 46005530 12800709 738225
2002 53668188 14288250 769516
2003 58786490 15799280 933680
2004 63372248 17036290 1181468

SOLUTION

The solution is as follows −

For Deposits

Make Base year as 1990 => 29585549 (100%)

Year Deposits C Trend percentage (C*100)
1999 29585549(D1) (D1/D1) = 1 100
2000 38345875(D2) (D2/D1) = 1.296 129.6
2001 46005530(D3) (D3/D1) = 1.555 155.5
2002 53668188(D4) (D4/D1) = 1.814 181.4
2003 58786490(D5) (D5/D1) = 1.987 198.7
2004 63372248(D6) (D6/D1) = 2.142 214.2

For Advances − Make Base year as 1990 => 7829177 (100%)

Year Advances C Trend percentage (C*100)
1999 7829177 (A1) (A1/A1)=1 100
2000 10115298 (A2) (A2/A1)= 1.292 129.2
2001 12800709 (A3) (A3/A1)= 1.635 163.5
2002 14288250 (A4) (A4/A1)= 1.825 182.5
2003 15799280 (A5) (A5/A1)= 2.018 201.8
2004 17036290 (A6) (A6/A1)= 2.176 217.6

For profits − Make base year as 1990 => 513011 (100%)

Year Profits C Trend percentage (C*100)
1999 513011 (P1) (P1/P1)= 1 100
2000 594580 (P2) (P2/P1)= 1.159 115.9
2001 738225 (P3) (P3/P1)= 1.439 143.9
2002 769516 (P4) (P4/P1)= 1.500 150.0
2003 933680 (P5) (P5/P1)= 1.820 182.0
2004 1181468 (P6) (P6/P1)= 2.303 230.3
Updated on: 2020-08-11T11:26:02+05:30

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