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
Question
29What was the 2012 net profit amount if the 2013 pro-forma net profit of 228,140 153,279 $145,860
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.
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