Question

net income was 517500 in 2015, 476100 in 2016, 533232 in 2017. What is the percentage if change from (a)2015 to 2016, and (b) from 2016 to 2017

Answer 1

Percentage change in net income

= (Closing value – Opening value) / Opening value

a)

For 2016 (2015 to 2016)

= (Net Income for 2016 – Net Income for 2015) / Net Income for 2015

= ($476,100 - $ 517,500) / $ 517,500

= - $ 41,400 / $ 517,500

= -0.08 or – 8% or a Fall in Net Income from 2015 to 2016 by 8%

For 2017 (2016 to 2017)

= (Net Income for 2017 – Net Income for 2016) / Net Income for 2016

= ($533,232 - $ 476,100) / $ 476,100

= $ 57,132 / $ 476,100

= 0.12 or 12% or an Increase of 12% from 2016 to 2017