Savanah Company reported the following amounts of net income.
$$\begin{array} { l l }
\text { Year 1 } & \$ 50,000 \
\text { Year 2 } & \$ 70,000 \
\text { Year 3 } & \$ 56,000
\end{array}$$
Which of the following is the percentage change in net income from Year 2 to Year 3?
A)25.0%
B)(30.0%)
C)20.0%
D)(20.0%)
E)None of the answer choices is correct.

Question

Savanah Company reported the following amounts of net income.
$$\begin{array} { l l } 
\text { Year 1 } & \$ 50,000 \
\text { Year 2 } & \$ 70,000 \
\text { Year 3 } & \$ 56,000
\end{array}$$
Which of the following is the percentage change in net income from Year 2 to Year 3?
A)25.0%
B)(30.0%)
C)20.0%
D)(20.0%)
E)None of the answer choices is correct.

Quizplus · Accepted Answer

The percentage change in net income from Year 2 to Year 3 is calculated as $\frac{Year\ 3 - Year\ 2}{Year\ 2} \times 100 = \frac{56,000 - 70,000}{70,000} \times 100 = -20.0%$.

Savanah Company Reported the Following Amounts of Net Income Year 1 $50,000 Year 2 $70,000 Year 3 $56,000\begin{array} { l l } \text { Year 1 } & \$ 50,000 \\\text { Year 2 } & \$ 70,000 \\\text { Year 3 } & \$ 56,000\end{array} Year 1 Year 2 Year 3 ​$50,000$70,000$56,000​

Savanah Company Reported the Following Amounts of Net Income $\begin{array} { l l } \text { Year 1 } & \$ 50,000 \\\text { Year 2 } & \$ 70,000 \\\text { Year 3 } & \$ 56,000\end{array}$