Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 13 - Financial Analysis: The Big Picture - Brief Exercises: BE13-7

Answer

Step1: Given data can be summarized as below: Net income was 561,600 dollars in 2010 Step2: Computation of net income: Change in Net Income Income of 2010 561,600 dollars Income for 2009 = 561,600/(100+17) x100 Income for 2009 = 480,000 dollars

Work Step by Step

Step1: Company experienced a 17% increase in net income over 2009 Step2: Increase in net income over 2009 by 17%
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