- "Analyzing RDJ Co.'s Net Income from 2019 to 2021: Increase or

School: Red River College - Course: ECON 1003 - Subject: Accounting

Supplemental Instruction Handouts Accounting Fundamentals Final Exam Review Modules 4, 5, 6, and 7 1. Selected horizontal percentages of a base-year amount from RDJ Co. statement of income are listed here: 202120202019 Sales99%97%100% Cost of Goods Sold88%93%100% Operating Expenses87%92%100% Income Tax Expense163%121%100% Assuming that RDJ Co. did not have any non-operating or irregular items, did its net income increase, decrease, or remain unchanged over the period from 2019 to 2021? Explain the reasons for your answer. 2019 to 2020 There has been a overall decrease in expenses and costs. Income tax expense has increased suggesting a higher income before taxes.Net income is INCREASING!!! 2020 to 2021 There has been a overall decrease in expenses and costs. Sales has increased! Income tax expense has increased suggesting a higher income before taxes.Net income is INCREASING!!!

Library and Academic Services These questions were compiled by Michael Reimer and Charanjit Singh for the Library and Academic Services2. Selected vertical percentages from ZAB Co. statement of income are listed here: 202120202019 Sales100%100%100% Cost of Goods Sold48%45%40% Operating Expenses32%30%25% Income Tax Expense6%8%10% Assuming that ZAB Co. did not have any non-operating or irregular items, did its net income as a percentage of sales increase, decrease, or remain unchanged over the period from 2019 to 2021? Explain the reasons for your answer. 2019 = 100% - 40% - 25% - 10% = 25% 2020 = 100% - 45% - 30% - 8% = 17% 2021 = 100% - 48% - 32% - 6% = 14% 2019 to 2020 = Net income has decreased! 2020 to 2021 = Net income has decreased!