The net income for a company was $315,000 last year and is $270,000 this year. The percent of increase or decrease was
A) 16.7%.
B) 14.3%.
C) 26.4%.
D) 86.0%.

Question

Quizplus · Accepted Answer

To find the percent change, we need to use the following formula:

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

percent change = ($270,000 - $315,000) / $315,000 x 100%
percent change = -$45,000 / $315,000 x 100%
percent change = -14.3%

Since the percent change is a decrease, we choose the letter B as the best answer.

The Net Income for a Company Was $315,000 Last Year