Table 18-1
A company reported $175,000 of net income for 2015, $245,000 for 2016, and $220,500 for 2017.
-Refer to Table 18-1.The percentage change in net income from 2015 to 2016 was:
A) 50.00%
B) 40.0%
C) 28.57%
D) 30.00%

Question

Quizplus · Accepted Answer

The percentage change in net income from 2015 to 2016 can be calculated as follows:

[(Net Income 2016 - Net Income 2015) / Net Income 2015] x 100

= [(245,000 - 175,000) / 175,000] x 100

= 70,000 / 175,000 x 100

= 0.4 x 100

= 40%

Therefore, the correct answer is choice B, which represents a 40.0% increase in net income from 2015 to 2016.

Table 18-1 A Company Reported $175,000 of Net Income for 2015, $245,000