The trend analysis report of Marshall,Inc.is given below (in millions):

Which of the following is a correct conclusion from the above analysis?
A)Net income for 2016 has increased by 115% over that for 2014.
B)Net income for 2016 has decreased by 15% over that for 2014.
C)Net income for 2016 has decreased by 115% over that for 2014.
D)Net income for 2016 has increased by 15% over that for 2014.

Question

The trend analysis report of Marshall,Inc.is given below (in millions):

Which of the following is a correct conclusion from the above analysis?
A)Net income for 2016 has increased by 115% over that for 2014. 
B)Net income for 2016 has decreased by 15% over that for 2014. 
C)Net income for 2016 has decreased by 115% over that for 2014. 
D)Net income for 2016 has increased by 15% over that for 2014.

Quizplus · Accepted Answer

From the trend analysis report, we can see that the net income for 2014 is $20 million and for 2016 is $23 million. To calculate the percentage increase or decrease, we use the formula:

Percentage change = (New value - Old value) / Old value x 100

Therefore, the percentage change in net income from 2014 to 2016 is: 
Percentage change = (23 - 20) / 20 x 100 = 15%

Hence, we can conclude that the net income for 2016 has increased by 15% over that for 2014. So, the correct choice is D.

The Trend Analysis Report of Marshall,Inc