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29What was the 2012 net profit amount if the 2013 pro-forma net profit of $187,000 was based on a 22% increase? $228,140 $182,975 $153,279 $145,860

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29What was the 2012 net profit amount if the 2013 pro-forma net profit of 187,000wasbasedona22187,000 was based on a 22% increase? 228,140 182,975182,975 153,279 $145,860

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Solution

To find the 2012 net profit amount, we need to understand that the 2013 pro-forma net profit was based on a 22% increase from the 2012 net profit.

Let's denote the 2012 net profit as X.

According to the problem, X increased by 22% to become $187,000 in 2013.

We can express this relationship mathematically as:

X + 0.22X = $187,000

This simplifies to:

1.22X = $187,000

To find X, we divide both sides of the equation by 1.22:

X = $187,000 / 1.22

X = $153,279

So, the 2012 net profit amount was $153,279.

This problem has been solved

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