Question

D Question 2 0.75 Apts Home M Below is part of Workiva Inc.'s income statements for 2016, 2017, and 2018. $ in thousands December 31, 2018 $244,344 65,860 178,484 December 31, December 2017 31, 2016 $207,869 $178,646 60,245 51,625 147,624 127,021 Revenue Cost of Revenue Gross Profit Research & Development General & administrative Expenses 81,602 68,17257,438 90,337 84,161 80,466 What is 2017's percentage change in Revenue? Select) What is 2017's percentage change in Cost of Revenue? Did the percentage change in Cost of Revenue match the percentage change in Revenue in 2017? [Select)

Answer 1

Ans. 2	Percentage change in revenue = (Revenue for 2017 - Revenue for 2016) / Revenue for 2016 * 100
		($207,869 - $178,646) / $178,646 * 100
		$29,223 / $178,646 * 100
		16.36%
	Percentage change in cost of revenue = (cost of revenue for 2017 - cost of revenue for 2016) / cost of revenue for 2016 * 100
		($60,245 - $51,625) / $51,625 * 100
		$8,620 / $51,625 * 100
		16.70%
	No, the percentage change in cost of revenue did not match the percentage change in revenue.
	Percentage change in cost of revneue is higher than the Percentage change in revneue.
Ans. 3	Trend percentage of revenue = Revenue of 2017 / Revenue of base year 2016 * 100
		$207,869 / $178,646 * 100
		116.36%
	Trend percentage of revenue = Revenue of 2018 / Revenue of base year 2016 * 100
		$244,344 / $178,646 * 100
		136.78%
	Trend percentage of cost of revenue = Cost of revenue of 2017 / Cost of revenue of base year 2016 * 100
		$60,245 / $51,625 * 100
		116.70%
	Trend percentage of cost of revenue = Cost of revenue of 2018 / Cost of revenue of base year 2016 * 100
		$65,860 / $51,625 * 100
		127.57%
	Trend percentage of revenue in 2018 is higher than the Trend percentage of cost of revenue in 2018.