Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

Exercise 51

Computing and Interpreting Rates of Change
Selected information from the financial statements of Remmer, Inc., includes the following:

a. Compute the percentage change in 2015 for the amounts of ( 1 ) net sales and ( 2 ) total expenses.
b. Using the information developed in part a, express your opinion as to whether the company's net income for 2015:
1. Increased at a greater or lower percentage rate than did net sales.
2. Represented a larger or smaller percentage of net sales revenue than in 2014. For each answer, explain your reasoning without making any computations or references to dollar amounts.