Asked by Jacob Matthews on Jun 01, 2024
Verified
Ladle Corporation had net income of $2000000 in 2015. Using 2016 as the base year net income decreased by 70% in 2014 and increased by 180% in 2017.
Instructions
Compute the net income reported by Ladle Corporation for 2016 and 2017.
Base Year
A specific year or period selected as a reference point for comparison with subsequent years or periods in financial and economic analyses.
Net Income
The amount of earnings left after all expenses, including taxes and interest, have been deducted from total revenue; it represents the profit a company makes.
- Master the methodology for carrying out calculations related to equity and asset returns to appraise a firm's fiscal performance.
Verified Answer
AT
April TennantJun 06, 2024
Final Answer :
2016: ÷ $2000000 = 70%
= $2000000 × .70 = $1400000
The decrease is $1400000; therefore net income for 2016 is $600000.
2017: ÷ $2000000 = 180%
= $2000000 × 1.80
= $3600000
The net income for 2017 is $5600000 ($2000000 + $3600000).
= $2000000 × .70 = $1400000
The decrease is $1400000; therefore net income for 2016 is $600000.
2017: ÷ $2000000 = 180%
= $2000000 × 1.80
= $3600000
The net income for 2017 is $5600000 ($2000000 + $3600000).
Learning Objectives
- Master the methodology for carrying out calculations related to equity and asset returns to appraise a firm's fiscal performance.
Related questions
Noble Company Had Net Income of $175000 and Net Sales ...
Lindboe Corporation Has Provided the Following Financial Data ...
Brill Corporation Has Provided the Following Financial Data ...
Jaquez Corporation Has Provided the Following Financial Data ...
Degollado Corporation's Most Recent Income Statement Appears Below ...