PROBLEM 1–4 Compute increases (decreases) in percents for both Years 6 and 7 by entering all the missing data in the table below. Analyze and interpret any significant results revealed from this trend analysis.

YEAR 7 YEAR 6 YEAR 5 Index Change in Index Change in Index Statement Item No. Percent No. Percent No.
Net sales . . . . . . . . . . . . . . _____ 29% 100 _____% 90 Cost of goods sold . . . . . . . 139 _____ 100 _____ 85 Gross profit . . . . . . . . . . . . . 126 _____ 100 _____ 80 Operating expenses . . . . . . _____ 20 100 _____ 65 Income before tax . . . . . . . . _____ 14 100 _____ 70 Net income . . . . . . . . . . . . . 129 _____ 100 _____ 75