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 trend analysis in the net income,using 2015 as the base,was::
A) $$\begin{array} { | l | l | l | }
\hline 2015 & 2016 & 2017 \
\hline 100 \% & 140 \% & 126 \% \
\hline
\end{array}$$
B) $$\begin{array} { | l | l | l | }
\hline 2015 & 2016 & 2017 \
\hline 100 \% & 140 \% & 130 \% \
\hline
\end{array}$$
C) $$\begin{array} { | l | l | l | }
\hline 2015 & 2016 & 2017 \
\hline 100 \% & 126 \% & 140 \% \
\hline
\end{array}$$
D) $$\begin{array} { | l | l | l | }
\hline 2015 & 2016 & 2017 \
\hline 100 \% & 130 \% & 120 \% \
\hline
\end{array}$$

Question

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 trend analysis in the net income,using 2015 as the base,was::
A) $$\begin{array} { | l | l | l | } 
\hline 2015 & 2016 & 2017 \
\hline 100 \% & 140 \% & 126 \% \
\hline
\end{array}$$
B) $$\begin{array} { | l | l | l | } 
\hline 2015 & 2016 & 2017 \
\hline 100 \% & 140 \% & 130 \% \
\hline
\end{array}$$
C) $$\begin{array} { | l | l | l | } 
\hline 2015 & 2016 & 2017 \
\hline 100 \% & 126 \% & 140 \% \
\hline
\end{array}$$
D) $$\begin{array} { | l | l | l | } 
\hline 2015 & 2016 & 2017 \
\hline 100 \% & 130 \% & 120 \% \
\hline
\end{array}$$

Quizplus · Accepted Answer

The trend analysis percentages are calculated by dividing each year's net income by the base year (2015) net income and then multiplying by 100. For 2016, $\frac{245,000}{175,000} \times 100 = 140\%$. For 2017, $\frac{220,500}{175,000} \times 100 = 126\%$. Therefore, the correct trend analysis is 100%, 140%, and 126% for the years 2015, 2016, and 2017, respectively.

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

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