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Brief Exercise 14-7 Your answer is incorrect. Try again. If Coho Company had net income of $575,000 in 2020 and it experienced a 25% increase in net income over 2019. What was its 2019 net income? Net income of 2019

Respuesta :

Answer:

$460,000

Explanation:

Given that,

Net income in 2020 = $575,000

Experienced a 25% increase in net income over 2019.

Net income in 2020 = Net income in 2019 + 25% of Net income in 2019

$575,000 = Net income in 2019 (1 + 0.25)

Net income in 2019 = $575,000 ÷ 1.25

                                  = $460,000

Therefore, the net income of Coho Company in 2019 is $460,000.