Following are selected financial data for a recent five-year period for Walters & Cruz, Inc. (Amounts are expressed in thousands except for per share data.)

Required:
(a) Prepare a trend analysis for each listed financial item of Walters & Cruz using Year 1 as the base year.
(b) How is trend analysis used by financial decision makers? What are the limitations of trend analysis?

Transcribed Image Text:

Year 1 Year 2 Year 3 Year4 Year 5 Sales $254,882 $298,468 $392,549 $348,35 $387,430 Income 6,546 9,023 9,842 7,343 10,666 per Share0.52 40 0.56 0.62 per Share.22 .78 2.97 7 3.87 Operating Earnings Book Value