Question

Question 10

1. Table 12-1
   Bandroni Company
   Income Statement
   For Years Ended December 31, 2X10 and 2X09
   
   2X10 2X09
   Sales $900 $800
   Less Cost of Goods Sold 470   440
   Gross Profit $430 $360
   Operating Expenses:
   Wage Expense $ 95 $ 90
   Rent Expense 35 30
   Miscellaneous Expense 20 15
   Depreciation Expense 25 20
   Total Operating Expenses $175 $155
   Operating Income $255 $205
   Less Other Expenses:
   Interest Expense 15 10
   Income Before Tax $240 $195
   Less Income Tax Expense 110 85
   Net Income $130 $110
   
   
   Referring to Table 12-1, what is the percentage increase or (decrease) in interest expense for Bandroni Company?

   		33.3%
   		50.0%
   		(50.0)%
   		(100.0)%
   		(33.3)%

Answer 1

OPTION - 50%

ease)/ t20 Percentage nuoroda (decease) 2009 2010 Increase 3 $10 $15 on to $5 507 3 Interest expense n Interest expense oo trend Percentage = (current year - Base year) xico Base year 15-10 - x 100 = 50% -

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