Exercise 17-5 Determination of income effects from common-size and trend percents LO P1, P2

Common-size and trend percents for Rustynail Company's sales, cost of goods sold, and expenses follow.

	Common-Size Percents							Trend Percents
	2017		2016		2015			2017		2016		2015
Sales	100.0	%	100.0	%	100.0	%		104.5	%	103.3	%	100.0	%
Cost of goods sold	63.1		60.9		57.1			115.5		110.2		100.0
Total expenses	14.3		13.8		14.1			106.1		101.1		100.0

Determine the net income for the following years. (Enter all amounts as positive values.)

	2017	2016	2015
Sales			$100,000
Cost of Goods Sold			57,100
Total Expenses			14,100
Net Income			$28,800

Did the net income increase, decrease, or remain unchanged in this three-year period?

A. Net income increased

B. Remained unchanged

C. Net income decreased