Murtaugh, Inc. provides communication systems and support to large businesses. Presented in the following schedule are selected financial data reported recently by Murtaugh. Amounts are expressed in millions of dollars except dividends per share.
(a) Prepare a trend analysis for each of the three financial statement items listed for Murtaugh using 2006 as the base year.
(b) Predict the 2010 figure for each financial statement item. In which of these predicted amounts do you have the most confidence? Why?
(c) During 2010, Murtaugh actually had total revenues of $448.3 million, paid dividends of $0.39 per share, and had total assets at year-end of $181.1 million. Compute the percentage error between each of these actual amounts and the corresponding prediction you made in part (b). Comment on any additional insight these results provide you regarding trend analysis.

  • CreatedMarch 27, 2015
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