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CMA Intermediate · Financial Management and Business Data Analytics · Comparative, Common-Size Financial Statements and Trend Analysis

Sundaram Textiles reported sales of ₹8,00,000 in 2023-24 and ₹10,00,000 in 2024-25. Net profit was ₹80,000 in 2023-24 and ₹1,20,000 in 2024-25. Taking 2023-24 as base year (=100), what are the trend percentages for sales and net profit in 2024-25?

Sales trend is 125 and net profit trend is 150. Trend percentage divides the current-year figure by the base-year figure and multiplies by 100: 10,00,000/8,00,000 gives 125, and 1,20,000/80,000 gives 150.

  1. ASales 125; Net profit 150Correct
  2. BSales 80; Net profit 66.7
  3. CSales 125; Net profit 120
  4. DSales 25; Net profit 50

Explanation

Trend % = current year / base year × 100. Sales: 10,00,000/8,00,000 × 100 = 125. Net profit: 1,20,000/80,000 × 100 = 150. Option D gives the percentage increase (25 and 50), not the trend index, and option B inverts the ratio.

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