Answer:
The percentage change in net income = 33.33%
Explanation:
Let us establish a formula for calculating the percentage change in net income.
Generally when calculating percentage change, the formula used is:
[tex]\frac{final - initial}{initial} * 100[/tex]
where:
final = income for 20X7 = $24,000
Initial = income for 20X6 = $18,000
∴ % change = [tex]\frac{24,000-18000}{18000} *100[/tex]
[tex]=\frac{6000}{18000} *100\\= 0.3333 * 100[/tex]
= 33.33%
