A company’s revenue increased by 20% in the first year and decreased by 10% in the second year. If the original revenue was $100,000, what is the final revenue?

["Title: Analyzing a Company’s Revenue Growth: From $100,000 to a Final Figure After Fluctuating Performance", "Meta Description:\nExplore the financial journey of a growing company that saw a 20% revenue increase in Year 1, followed by a 10% decline in Year 2—ending at a final revenue of $108,000. Learn how revenue fluctuations impact business health and long-term planning.", "---", "### Revenue Fluctuations: What Happened to This Company’s Income?", "Understanding revenue movement is crucial for investors, analysts, and business leaders. A headline alone—“a company’s revenue increased by 20% in Year 1 and dropped 10% in Year 2”—might seem contradictory, but real-world financial performance often involves cycles of growth and correction.", "Let’s break down the numbers step by step to clarify how a starting revenue of $100,000 transformed over two years.", "---", "### Step 1: Calculate Year 1 Revenue After a 20% Increase", "The company began with $100,000 in revenue.", "A 20% increase means:\n[\n\ ext{Increase} = 100,000 \ imes 0.20 = 20,000\n]\n[\n\ ext{Year 1 Revenue} = 100,000 + 20,000 = \boxed{120,000}\n]", "---", "### Step 2: Calculate Year 2 Revenue After a 10% Decrease", "In Year 2, revenue dropped by 10% from the Year 1 total.", "First, calculate the decrease:\n[\n\ ext{Decrease} = 120,000 \ imes 0.10 = 12,000\n]\n[\n\ ext{Year 2 Revenue} = 120,000 - 12,000 = \boxed{108,000}\n]", "---", "### Final Revenue: What Did the Company Earn After Two Years?", "After two years of financial fluctuation, the company’s revenue stands at $108,000—a slight decline from Year 1 but a stronger 20% gain overall relative to initial performance.", "This trajectory illustrates:", "- Volatility matters: Growth isn’t always linear.\n- Context shapes perception: A drop from $120,000 to $108,000 may seem negative, but the root revenue is still $20,000 higher than the start.\n- Year-over-year comparisons help reveal trends, even amid short-term swings.", "---", "### Why This Matters for Stakeholders", "Investors and executives should look beyond surface-level percentage changes. Understanding the base revenue and absolute growth provides clearer insight into financial health.", "In summary, even with a 10% drop after strong growth, ending with a $108,000 revenue shows resilience—not failure. This kind of performance highlights the importance of strategic decisions, market adaptation, and disciplined financial management.", "---", "Keep tracking, analyzing, and interpreting revenue trends—your business decisions depend on them.", "Key phrases: company revenue, revenue growth, YoY financial performance, business cycle analysis, financial health metrics", "---", "Learn more about interpreting revenue fluctuations and forecasting financial results with reliable accounting insights.", "---", "### Summary Table of Revenue Changes\n| Year | Revenue Starting | Growth/Decline | Calculation | Revenue Ending |\n|------|------------------|----------------|--------------------------|----------------|\n| 1 | $100,000 | +20% | +$20,000 increase | $120,000 |\n| 2 | $120,000 | -10% | –$12,000 decrease | $108,000 |\n| 2| — | — | — | $108,000 |", "---", "If you want to dive deeper into analyzing fluctuating revenues or building forecasting models, check out advanced financial planning resources."]