# Question: Q1 Complete the trend indexes for Total expenses and Net

Q1. Complete the trend indexes for Total expenses and Net income using the amounts listed below. To compute, divide each amount by the amount of the base year and multiply by 100. Record the resulting trend index in the shaded area below. Use 2007 as the base year.
Q2. From 2007 to 2010 sales growth for PepsiCo was 47%. During the same period, total expenses increased ___________. When net sales increase, expenses would be expected to (___________ / stay the same / decrease). It is favorable when sales increase by 47% and expenses increase at a (greater / ___________) rate than 47%. From 2007 to 2010 (revenues / ___________) of PepsiCo increased at a greater rate, which is (favorable / ___________), resulting in a (_________/ large) increase in net income.
Q3. Assume PepsiCo had a goal of increasing profits by 5% each year. This goal was (________ / not met).
Q4. The best year financially for Pepsi Co. was (_________ / _________ / 2008). Why?
The worst year financially for Pepsi Co. was (2010 / 2009 / ___________). Why?
Q5. Complete the trend indexes for Liabilities and Stockholders’ Equity using the amounts listed below. To compute, divide each amount by the amount for the base year and multiply by 100. Record the resulting trend index in the shaded area below. Use 2007 as the base year.
Q6. The assets of PepsiCo increased by 97% from 12/29/2007 to 12/25/2010, indicating PepsiCo is (___________ / shrinking). From 12/29/2007 to 12/25/2010, (assets / ___________) increased at a greater rate, indicating the corporation is relying (___________ / less) on debt to finance assets.
Q7. Stockholders’ equity amounts are greater than the base year on (___________ / 12/26/2009 / 12/27/2008) when the trend index is (___________ / less) than 100. Stockholders’ equity amounts are less than the base year on (12/25/2010 / ___________ / ___________) when the trend index is (greater / _________) than 100.
Q8. It is easier to analyze Pepsi Co. (before / ________) preparing the trend analysis.

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• CreatedSeptember 17, 2015
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