1. Using 2010 as a base year, prepare a trend analysis of the data that follows, and tell whether the situation shown by the trends is favorable or unfavorable. (Round to one decimal place.)

2014 2013 2012 2011 2010

Net sales $51,040 $47,960 $48,400 $45,760 $44,000

Cost of goods sold 34,440 30,800 31,080 29,400 28,000

General and admin expenses 10,560 10,368 10,176 9,792 9,600

Operating Income 6,040 6,792 7,144 6,568 6,400

2. Compute the amount and percentage changes for Riveria Company's comparative balance sheets, and comment on the changes from 2013 to 2014. (Round the percentage changes to one decimal place)

Rivera Company

Comparative Balance Sheets

December 31, 2014 and 2013

2014 2013

Assets

Current assets $37,200 $25,600

Property, plant and equipment (net) 218,928 194,400

Total assets $256,128 $220,000

Liabilities and Stockholder's Equity

Current Liabilities $22,400 $ 6,400

Long term liabilities 70,000 80,000

Stockholder's equity 163,728 133,600

Total liabilities and stockholder's equity $256,128 $220,000

3. Express Rivera Company's partial comparative income statements as common size statements and comment on the changes from 2013 to 2014.

Rivera Company

Partial Comparative Income Statements

For the years ended December 31,2014 and 2013

2014 2013

Net sales $424,000 $368,000

Cost of goods sold 254,400 239,200

Gross Margin 169,600 128,800

Selling expenses 106,000 73,600

General expenses 50,880 36,800

Total operating expenses $156,880 $110,400

Operating Income $12,720 $18,400 Please explain the steps taken to answer these questions as I am trying to get a better understanding of how to do them. Thanks!