Ramos Company included the following information in its annual report:
$\begin{array}{|l|l|l|l|}
\hline & 2011 & 2010 & 2009 \
\hline \text { Sales } & \$ 178,400 & \$ 162,500 & \$ 155,500 \
\hline\text { Cost of goods sold } & 115,000 & 102,500 & 100,000 \
\hline\text { Operating expenses } & 50,000 & 50,000 & 45,000 \
\hline\text { Net incoume } & 13,400 & 10,000 & 10,500 \
\hline
\end{array}$
- Refer to the information for Ramos Company. In a percentage change income statement over the period of 2009 to 2011, what is the change in net income?
A) 100%
B) 21.6%
C) 72.4%
D) 27.6%

Question

Ramos Company included the following information in its annual report:
$\begin{array}{|l|l|l|l|}
\hline & 2011 & 2010 & 2009 \
\hline \text { Sales } & \$ 178,400 & \$ 162,500 & \$ 155,500 \
\hline\text { Cost of goods sold }  & 115,000 & 102,500 & 100,000 \
\hline\text { Operating expenses } & 50,000 & 50,000 & 45,000 \
\hline\text { Net incoume }  & 13,400 & 10,000 & 10,500 \
\hline 
\end{array}$ 
- Refer to the information for Ramos Company. In a percentage change income statement over the period of 2009 to 2011, what is the change in net income?
A) 100%
B) 21.6%
C) 72.4%
D) 27.6%

Quizplus · Accepted Answer

The change in net income from 2009 to 2011 is calculated as $\frac{13,400 - 10,500}{10,500} \times 100 = 27.6%$.

Ramos Company Included the Following Information in Its Annual Report