FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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### Brief Exercise 18-07
Coho Company had net income of $744,800 in 2020 and it experienced a 33% increase in net income over 2019.
**What was its 2019 net income?**
Net income of 2019 $__________
---
#### Details
- There is no graph or diagram in the image.
- The exercise involves calculating the 2019 net income given the 2020 net income and the percentage increase.
---
### Instructions
To calculate the net income for 2019:
1. Let the net income of 2019 be \( x \).
2. According to the problem, 2020 net income is $744,800, which is a 33% increase over 2019.
3. Therefore, \( x + 0.33x = 744,800 \).
4. Simplifying, \( 1.33x = 744,800 \).
5. Solving for \( x \), \( x = \frac{744,800}{1.33} \).
### Submission
- Use the calculator provided to complete your calculations.
- Unlimited attempts are allowed.
- You can save your progress and submit your answer later if needed.
---
### Tools and Resources
- Calculator
- Printer Version
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### Actions
- [SAVE FOR LATER]
- [SUBMIT ANSWER]
---](https://content.bartleby.com/qna-images/question/f9e159a4-9637-434e-a29d-9a02e82e3af6/8770f6dd-4ccf-499a-9f0c-7d03c81a9b44/h0eq6p5.jpeg)
Transcribed Image Text:---
### Brief Exercise 18-07
Coho Company had net income of $744,800 in 2020 and it experienced a 33% increase in net income over 2019.
**What was its 2019 net income?**
Net income of 2019 $__________
---
#### Details
- There is no graph or diagram in the image.
- The exercise involves calculating the 2019 net income given the 2020 net income and the percentage increase.
---
### Instructions
To calculate the net income for 2019:
1. Let the net income of 2019 be \( x \).
2. According to the problem, 2020 net income is $744,800, which is a 33% increase over 2019.
3. Therefore, \( x + 0.33x = 744,800 \).
4. Simplifying, \( 1.33x = 744,800 \).
5. Solving for \( x \), \( x = \frac{744,800}{1.33} \).
### Submission
- Use the calculator provided to complete your calculations.
- Unlimited attempts are allowed.
- You can save your progress and submit your answer later if needed.
---
### Tools and Resources
- Calculator
- Printer Version
---
### Actions
- [SAVE FOR LATER]
- [SUBMIT ANSWER]
---
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