Table 18-1 A Company Reported $175,000 of Net Income for 2015, $245,000

question 95

Multiple Choice

Table 18-1
A company reported $175,000 of net income for 2015, $245,000 for 2016, and $220,500 for 2017.
-Refer to Table 18-1.The percentage change in net income from 2016 to 2017 was:

• A) (11.11)%
• B) 11.11%
• C) (10.00)%
• D) 10.00%

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Definitions:

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equity) in a balance sheet is represented as a proportion of the total account.

Income Statements

A financial report summarizing a company's revenues, expenses, and profits over a specified period.

Trends

General directions in which something is developing or changing, often identified through the analysis of data over periods of time.

Vertical Analysis

A method in financial statement analysis where each entry for each of the three major categories of accounts (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account.