For the last two years BRC Company had net income as follows: $$\begin{array} { | l | c | c | }
\hline & \text { Year 1 } & \text { Year 2 } \
\hline \text { Net Income } & \$ 160,000 & \$ 200,000 \
\hline
\end{array}$$ What was the percentage change in income from Year 1 to Year 2?
A) 20% increase
B) 20% decrease
C) 25% increase
D) 25% decrease

Question

For the last two years BRC Company had net income as follows: $$\begin{array} { | l | c | c | } 
\hline & \text { Year 1 } & \text { Year 2 } \
\hline \text { Net Income } & \$ 160,000 & \$ 200,000 \
\hline
\end{array}$$ What was the percentage change in income from Year 1 to Year 2?
A) 20% increase
B) 20% decrease
C) 25% increase
D) 25% decrease

Quizplus · Accepted Answer

To find the percentage change in income, we use the formula:
Percentage change = (Year 2 income - Year 1 income) / Year 1 income x 100%
Using the given values, we get:
Percentage change = (150,000 - 120,000) / 120,000 x 100%
Percentage change = 25%
Therefore, the percentage change in income from Year 1 to Year 2 is a 25% increase.

For the Last Two Years BRC Company Had Net Income