Use the following information to do a horizontal analysis of Rae Company's income statement for the current year and prior year: What is the percentage change in net income?
A)51.52%
B)-34.00%
C)29.59%
D)22.84%

Question

Use the following information to do a horizontal analysis of Rae Company's income statement for the current year and prior year:  What is the percentage change in net income?
A)51.52% 
B)-34.00% 
C)29.59% 
D)22.84%

Quizplus · Accepted Answer

The current year's net income of $65,000 is lower than the prior year's net income of $98,500, which represents a decrease of 34% ($33,500/$98,500). Therefore, the correct answer is B.

Use the Following Information to Do a Horizontal Analysis of Rae