The following are line items from the horizontal analysis of an income statemen

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 86PSA
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The following are line items from the horizontal analysis of an income statement:

      Increase/
(Decrease)
Increase/
(Decrease)
  2017 2016 Amount Percent
Fees earned $120,000 $100,000 $20,000 20%
Wages expense 50,000 40,000 10,000 25%
Supplies expense 600 700 (100) (15)%
Employee training expense 700 850 (150) (18)%

Which of the line items shows cause for concern?
a.Fees earned
b.Supplies expense
c.Wages expense
d.Employee training expense
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