Windows R Us is a nationwide producer and wholesaler of residential windows. They are analyzing some financial data from their most recent year and compiled the information in this table: Their accountant is putting together a presentation to demonstrate their performance during the year. Which single month showed the largest magnitude of change in Net Income (up or down)?
A) February: Decrease of 35.20%
B) February: Increase of 54.32%
C) September: Decrease of 41.08%
D) September: Increase of 41.08%

Question

Windows R Us is a nationwide producer and wholesaler of residential windows. They are analyzing some financial data from their most recent year and compiled the information in this table:  Their accountant is putting together a presentation to demonstrate their performance during the year. Which single month showed the largest magnitude of change in Net Income (up or down)?
A) February: Decrease of 35.20% 
B) February: Increase of 54.32% 
C) September: Decrease of 41.08% 
D) September: Increase of 41.08%

Quizplus · Accepted Answer

This question requires familiarity with calculating items in Excel, including Net Income and the increase or decrease in that value between months. To solve this problem in the most efficient manner, first solve for Net Income for each month in the appropriate row. The formula for January would be as follows: "=B2-C2," and you would place this in Cell D2. This should return a value of $288,170.00. You can now carry the formula down the column for each month row and the result will appear in cells D3-D13. Now, determine the change in Net Income between months using the following formula: (Current Month - Previous Month)/(Previous Month). Locate an empty cell next to D3, and calculate the change seen in February using this formula: "=(D3-D2)/D2" that returns a value of -35.20%. You can then carry the formula down the column into the additional cells. After doing so, you will see that the highest change happened in September with an Increase of 41.08% (Choice D).

Windows R Us Is a Nationwide Producer and Wholesaler of Residential