You are given the financial statements of a company for over the 6-year periods (2016 –
2021).
Considering 2016 as the base year, compute the trend index for the following items:
a. Revenue, cost of goods sold, total expenses and net earnings. Comment on the
trends of each of the items.
b. Total assets, total liabilities and shareholders’ equity. Comment on the trends of
each of the items.
c. Cash flow from operation, cash flow from investing, cash flow from financing and
closing cash balances. Comment on the trends of each of the items.
Extracted text: Income Statements (RM000) Revenue Cost of goods sold Gross profit Expenses: Salaries and benefits Rent and overhead Depreciation and amortization Interest Total expemses Earnings before taxes Taxes Net Earnings 2016 2017 2018 2019 2020 2021 102,007 118086 131,345 142,341 150,772 158,311 39,023 48,004 49,123 52,654 56,710 58,575 62,984 70,082 82.222 89,687 94.062 99,736 23.872 23,002 11.020 26,427 22,658 25,245 26,913 10.963 10,125 10.087 11,412 10.000 19,500 18,150 17,205 16,544 16,080 15.008 1,500 54,237 2,500 2,500 1,500 1,500 1,500 59,390 53,433 52,664 52,066 53,421 3,594 16,649 29,558 37,621 39,825 46.315 8,483 21,075 10,908 1,120 2,474 12,968 33,347 4,858 11,598 11,791 26,713 28,227 Balanace Sheets (RM000) 2016 2019 2017 2018 2020 2021 Assets Cash Accounts receivable 181,210 | 183,715 | 211,069 239,550 272,530 7,807 167,971 5,100 5,904 6,567 7,117 7,539 Inventory Total eurrent assets 7,805 9.601 9,825 10,531 11,342 11,715 180,876 196,715 | 200,107 | 228,717 | 258,431 | 292,052 37,520 Property and equipment Total assets 45,500 42,350 40,145 38,602 37,513 226,376 | 239,065 | 240,252 267,319 295,951| 329,565 Liabilities Acccounts payable 3,902 4,800 4,912 5,268 5,671 5,938 Long-term debt Total liabilities 50,000 50,000 30,000 30,000 30,000 30,000 53,902 54,800 34,912 35,268 35,671 35,938 Shareholders' equity Equity capital Retained earnings Total shareholders' equity Total Liabilities & shareholders' equity 170,000 170,000 170,000 170,000 170,000| 170,000 30,280| 123,627 35,340 172,474 184,265 | 205,340 232,053 200,280 239,065 | 240,252 | 267,321 235,951 2,474 14,265 62,053 293,627 226,376 329,565 Cash Flow Statements (RMO00) Cash from operations Cash from investing Cash from financing 2016 2017 28,239 15,000 2018 37,505 2019 2020 2021 42,354 15,000 12,971 43,480 47,980 15,000 170000 167.971 15,000 20,000 15,000 15,000 Net increase/decrease in cash Opening cash balance Closing cash balance 13,239 167,971 167,971| 181,210 27,354 28,480 181,210 183,715 211,069 239,550 2,505 32,980 183,715| 211,069 239,549 272,530