Real-Life Math -- Solution
You are looking over the financial statements at your company. This
will help you plan the direction of your company. This is what you calculate:
If
you do double the gross income, will it be greater or lesser than last year?
By how much?
This year gross income for 6 months = $650,000
To
make this 12 months, double the amount:
$650,000 x 2 = $1,300,000
(or $1.3 million)
The company's gross income for 12 months
should be $1.3 million.
Last year gross income = $1.5 million
$1,500,000
- $1,300,000 = $200,000
Last year's gross income will be
more than this year's projected gross income by $200,000.
Will
your net income be lesser or greater than last year? By how much?
This
year net income for 6 months: $250,000
For 12 months, double the amount:
$250,000
x 2 = $500,000
Last year net income = $500,000
The
net income for this year is projected to be the same as it was for last year.