The following information is provided from Ace Electronics' annual report for the years ended December 31:

-Refer to the Ace Electronics annual report above.Using horizontal analysis with 2010 as the base year,$\bold{2012}$ Net income would be represented as ________.
A)90%
B)15%
C)(11)%
D)(10)%

Question

The following information is provided from Ace Electronics' annual report for the years ended December 31:

-Refer to the Ace Electronics annual report above.Using horizontal analysis with 2010 as the base year,$\bold{2012}$ Net income would be represented as ________.
A)90% 
B)15% 
C)(11)% 
D)(10)%

Quizplus · Accepted Answer

To calculate the percentage change in net income, we will use the following formula: 
((Net income in the given year - Net income in the base year) / Net income in the base year) * 100%
Using 2010 as the base year, we can calculate the percentage change in net income for 2012 as follows: 
(($360,000 - $400,000) / $400,000) * 100% = (-$40,000 / $400,000) * 100% = -10%
Therefore, the correct answer is D, (-10%).

The Following Information Is Provided from Ace Electronics' Annual Report 2012\bold{2012}2012

The Following Information Is Provided from Ace Electronics' Annual Report $\bold{2012}$