a. Prepare a vertical analysls percents as whole numbers. Versatile Company Income Statements For the Years Ended December 31 20Y5 20Y5 Percent 20Y4 20Y4 Percent Amount Amount Fees earned $793,000 100 % $672,000 100 % Operating expenses 650,260 81 % 591,360 86 % Income from $142,740 19 % $80,640 14 % operations b. Does the vertical analysis indicate a favorable or an unfavorable trend?

a. Prepare a vertical analysls percents as whole numbers. Versatile Company Income Statements For the Years Ended December 31 20Y5 20Y5 Percent 20Y4 20Y4 Percent Amount Amount Fees earned $793,000 100 % $672,000 100 % Operating expenses 650,260 81 % 591,360 86 % Income from $142,740 19 % $80,640 14 % operations b. Does the vertical analysis indicate a favorable or an unfavorable trend?

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter17: Financial Statement Analysis

Section17.1: Vertical Analysis Of An Income Statement

Problem 1OYO

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