Question

The following data (in millions) are taken from the financial statements of Tarrow Corporation: Recent Year Prior Year Revenue $386,972 $356,000 Operating expenses 326,634 303,000 Operating income $60,338 $53,000 a. For Tarrow Corporation, determine the amount of change in millions and the percent of change (round to one decimal place) from the prior year to the recent year for: Revenue Operating expenses Operating income Amount of Change (in millions) Percent of Change (round to 1 decimal place) Increase or Decrease 1. Revenue $fill in the blank 1 30,976 fill in the blank 2 % 2. Operating expenses fill in the blank 4 fill in the blank 5 3. Operating income fill in the blank 7 fill in the blank 8 b. During the recent year, revenue and operating expenses . As a result, operating income , from the prior year.

Answer 1

Tarrow Corporation

a) Amount of change in millions and the percent of change:

Amount Percentage Direction

of Change of Change of Change

Revenue $30,972 8.7% Increase

Operating expenses 23,634 7.8% Increase

Operating income $7,338 13.8% Increase

b) During the recent year, revenue and operating expenses increased by 8.7% and 7.8% respectively. As a result, the operating income increased by 13.8%, from the prior year.

Step-by-step explanation:

a) Data and Calculations:

Tarrow Corporation:

Recent Year Prior Year Change Percentage

Revenue $386,972 $356,000 $30,972 8.7% Increase

Operating expenses 326,634 303,000 23,634 7.8% Increase

Operating income $60,338 $53,000 $7,338 13.8% Increase