Prepare a trend analysis from the following sales, assuming a base year of 2007. Round to

the nearest whole percent.
2010 2009 2008 2007
$25,000 $40,000 $45,000 $50,000

Questions related financial statement Analysis

Case 1: Considering 2007 as the base year, prepare a trend analysis of the following
data for Sami Company, and tell whether the situation shown by the trends is
favorable or unfavorable. (Round your answers to one decimal place.)
2011 2010 2009 2008 2007
Net sales $1,520 $980 $1,200 $880 $1,000
Costs of goods sold 620 600 540 700 600
General and administrative
expenses
290 184 188 160 180
Operating income 610 196 472 20 220

To prepare a trend analysis, we need to determine the percentage change in sales from the base year (2007) to each subsequent year. Here's how we can calculate the trend analysis for the given sales data:

Step 1: Calculate the percentage change between each year and the base year (2007):
- For 2010: ((2010 sales - 2007 sales) / 2007 sales) * 100
- For 2009: ((2009 sales - 2007 sales) / 2007 sales) * 100
- For 2008: ((2008 sales - 2007 sales) / 2007 sales) * 100

Step 2: Round the calculated percentage changes to the nearest whole percent.

Let's calculate the trend analysis for each year:

For 2010: ((25,000 - 50,000) / 50,000) * 100 = -50%
The sales in 2010 decreased by 50% compared to the sales in 2007.

For 2009: ((40,000 - 50,000) / 50,000) * 100 = -20%
The sales in 2009 decreased by 20% compared to the sales in 2007.

For 2008: ((45,000 - 50,000) / 50,000) * 100 = -10%
The sales in 2008 decreased by 10% compared to the sales in 2007.

So, the trend analysis for the given sales data, assuming a base year of 2007, is as follows:
- 2010: -50%
- 2009: -20%
- 2008: -10%

Please note that a negative percentage represents a decrease in sales compared to the base year.