An inventory of $547912.34. This is a 22% increase from last year's ending figure. Determine last year's amount of closing inventory.

Question

Present of Increase and Decrease

Answer 1

Lats call last years inventory x.

 

If we had a 22% increase then, it increased by .22x, resulting in x+.22x=1.22x being the inventory after the increase.

 

So have the current inventory, 547912.34 = 1.22x = 1.22*last years inventory.

 

Divide the current amount by (1+%increase) to find last years inventory amount:

 

547912.34/1.22 = x = last years closing inventory