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

Finance ManagementAccountingAcademic Content

YearDepositsAdvancesProfit
1999295855497829177513011
20003834587510115298594580
20014600553012800709738225
20025366818814288250769516
20035878649015799280933680
200463372248170362901181468

SOLUTION

The solution is as follows −

For Deposits

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

YearDepositsCTrend percentage (C*100)
199929585549(D1)(D1/D1) = 1100
200038345875(D2)(D2/D1) = 1.296129.6
200146005530(D3)(D3/D1) = 1.555155.5
200253668188(D4)(D4/D1) = 1.814181.4
200358786490(D5)(D5/D1) = 1.987198.7
200463372248(D6)(D6/D1) = 2.142214.2

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

YearAdvancesCTrend percentage (C*100)
19997829177 (A1)(A1/A1)=1100
200010115298 (A2)(A2/A1)= 1.292129.2
200112800709 (A3)(A3/A1)= 1.635163.5
200214288250 (A4)(A4/A1)= 1.825182.5
200315799280 (A5)(A5/A1)= 2.018201.8
200417036290 (A6)(A6/A1)= 2.176217.6

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

YearProfitsCTrend percentage (C*100)
1999513011 (P1)(P1/P1)= 1100
2000594580 (P2)(P2/P1)= 1.159115.9
2001738225 (P3)(P3/P1)= 1.439143.9
2002769516 (P4)(P4/P1)= 1.500150.0
2003933680 (P5)(P5/P1)= 1.820182.0
20041181468 (P6)(P6/P1)= 2.303230.3
raja
Published on 11-Aug-2020 11:23:35
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