A company reported $155,000 of income for year 1; $180,000 for year 2; and $200,000 for year 3. The percentage change in net income from year 1 to year 3 is computed as:

Question

Quizplus · Accepted Answer

The percentage change in net income from year 1 to year 3 is calculated as the difference in income between the two years ($200,000 - $155,000 = $45,000) divided by the income in year 1 ($155,000), which is $45,000 / $155,000.

A Company Reported $155,000 of Income for Year 1; $180,000