Question

Net income was $503,000 in 2020, $473,000 in 2021, and $521,000 in 2022. What is the percentage of change from (a) 2020 to 2021, and (b) from 2021 to 2022

Answer 1

The percentage of change from 2020 to 2021 is -6% and from 2021 to 2022 is 10%.

Step-by-step explanation:

To calculate the percentage of change from one year to another, we can use the formula:

Percentage Change = [(New Value - Old Value)/Old Value] × 100%

(a) To find the percentage of change from 2020 to 2021:
Percentage Change = [(473,000 - 503,000)/503,000] × 100% = -6%

(b) To find the percentage of change from 2021 to 2022:
Percentage Change = [(521,000 - 473,000)/473,000] × 100% = 10%

Answer 2

Answer and Explanation:

The computation of the percentage of change is as follows;

a. For 2020 to 2021

= (Net income in 2021 - net income is 2020) ÷ (net income in 2020)

= ($473,000 - $503,000) ÷ ($503,000)

= -5.96% decrease

b .For 2021 to 2022

= (Net income in 2022 - net income is 2021) ÷ (net income in 2021)

= ($521,000 - $473,000) ÷ ($473,000)

= 10.15% increase

In this way it is calculated