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

Mandalika

Updated on: 11-Aug-2020

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