Question

plus.com Return to Blackboard Kimmel, Accounting: Tools for Business Decision Making, 5e Help System Announcements (1 Unread) CALCULATOR PREI Exercise 244 Exeter Corporation had net income of $3,000,000 in 2013. Using 2013 as the base year, net income decreased by 40% in 2014 and increased by 110% in 2015. Compute the net income reported by Exeter Corporation for 2014 and 2015. 2015 Net Income Click if you would like to Show Work for this question: Open Show Work Question Attempts: 0 of 1 used SAVE ^ BUSNII CHAP...pptx 2-2 (2).pages 2-2 (1).pages A BOOK-1 HUMA...pdf MacBook Air

Answer 1

Answer: Net Income, 2013 = Base Year= $3,000,000 Year 2014: Change in Net Income = Decrease 40% using 2013 as base year Decrease in Net Income in 2014 = $3,000,000 * 40% Decrease in Net Income in 2014 = $1,200,000 Net Income, 2014 = $3,000,000 - $1,200,000 Net Income, 2014 = $1,800,000 Year 2015: Change in Net Income = Increase 110% using 2013 as base year Increase in Net Income in 2015 = $3,000,000 * 110% Increase in Net Income in 2015 = $3,300,000 Net Income, 2015 = $3,000,000 + $3,300,000 Net Income, 2015 = $6,300,000 2014 $1,800,000 2015 $6,300,000 Net Income