Change Analysis Amount Percent Item Year 1 Year 2 3000 4000

Change Analysis Amount Percent Item Year 1 Year 2 3,000 (4,000) 4,000 2 6,000 (7,000) 4,000 8,000 4 10,000 Required Determine the absolute change and the percentage for these items

Solution

NOTE :

1. Change in amount = (year 2 amount - year 1 amount)

Irrespective of whether it os positive or negative amount

2.change in % =(change in amount/year 1 amount)*100

3.If the earliest year is zero or negative, the percent calculated will not be meaningful. N/M is used in the above table for not meaningful.

4.Most percents are rounded to one decimal place unless more are meaningful.

5.A small absolute dollar item may have a large percentage change and be considered misleading.

Item	Year 1	year 2	change in amount	change in percentage
1	-	3000	3000	N/M
2	6000	(4000)	(10000)	(166.67%)
3	(7000)	4000	11000	N/M
4	4000	-	(4000)	(100%)
5	8000	10000	2000	25%