Manchester Technology has the following data available: $\begin{array}{l}
\text {Inventory, December 31, 2013} & \$ 120 \
\text {Inventory, December 31, 2012} & \$200 \

\end{array}$
What is the percentage increase or (decrease)in inventory from 2012 to 2013 for Manchester Technology?
A)(120.0)%
B)120.0%
C)40.0%
D)62.5%
E)(40.0)%

Question

Manchester Technology has the following data available: $\begin{array}{l}
\text {Inventory, December 31, 2013} & \$ 120 \
\text {Inventory, December 31, 2012} & \$200  \

\end{array}$ 
What is the percentage increase or (decrease)in inventory from 2012 to 2013 for Manchester Technology?
A)(120.0)%
B)120.0%
C)40.0%
D)62.5%
E)(40.0)%

Quizplus · Accepted Answer

To calculate the percentage increase or decrease in inventory, we need to use the following formula:

Percentage change = (new value - old value) / old value x 100%

Substituting the given values in the formula, we get:

Percentage change = (120 - 200) / 200 x 100%
                  = -80 / 200 x 100%
                  = -40%

Since the percentage change is negative, it means there was a decrease in inventory from 2012 to 2013. The absolute value of the percentage change is 40%, so the best choice is E: (40.0)%.