In financial reports, a company's earnings for the current year (A). they are often compared to last year (P). This year a company had a profit of 15 million more than last year, which represents 25% more. Determine the company's profit for the current year.
To determine the company's profit for the current year, let's break down the information provided.
1. Let's assume the company's profit for the current year is represented by variable A.
2. The profit for last year is represented by variable P.
3. According to the given information, the company's profit for the current year (A) is $15 million more than last year's profit (P).
4. Additionally, the $15 million difference represents 25% more than last year's profit.
To find the value of A (the company's profit for the current year), we can set up the following equation:
A = P + $15 million
We also know that the $15 million difference represents 25% more than last year's profit. We can calculate the percentage increase as follows:
25% of P = $15 million
To solve for P, we divide both sides of the equation by 25% (or 0.25):
P = ($15 million) / 0.25
Thus, P = $60 million.
Now, substituting the value of P into the equation for A:
A = $60 million + $15 million
A = $75 million
Therefore, the company's profit for the current year is $75 million.