CS Executive · Corporate Accounting and Financial Management · Financial Statement Analysis
In trend analysis, a company's revenue was Rs 20 crore in the base year, Rs 25 crore in year 2 and Rs 30 crore in year 3. Taking the base year as 100, the trend percentages for year 2 and year 3 respectively are:
The trend percentages are 125 for year 2 and 150 for year 3. Each year's revenue is divided by the base year revenue of Rs 20 crore and multiplied by 100, so the base year always remains the fixed 100 reference.
- A125 and 120
- B125 and 150Correct
- C120 and 150
- D125 and 130
Explanation
Trend percentage = current year amount / base year amount x 100. Year 2: 25/20 = 125. Year 3: 30/20 = 150. The 120 figure comes from using the previous year (30/25) as the base, which is a year-on-year approach and not a base-year trend.
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