Question

Net income was $448600 in the current year and $365500 in the prior year. The year to year percentage change in net income is closest to:__________.

Answer 1

The answer is 22.74 perfect

Step-by-step explanation:

The percentage change is:

[Future value(Current year net income) / Present Value(Prior year net income)] - 1

($448,600/$365,500) - 1

1.2274- 1

0.2274

Expressed as a percentage

22.74 percent.

Alternatively:

(Future value - present value) / present value

($448,600 - $365,500) / $365,500

$83,100/$365,500

0.2274

Expressed as a percentage

= 22.74 percent.