Vertical Analysis  Two income statements for Cornea Company Follow: Cornea Company Imcome Statements For years Ended December 31   2019 2018 Fees earned  $1,640,000 $1,300,000 Operating Expenses  869,200 715,000 Operating Income  $770,800 $585,000 a. Prepare a vertical analysis of Cornea Company;s income statements. b.Does the vertical analysis indicate a favorable or ab unfavourable trend ?

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 74E
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Vertical Analysis 

Two income statements for Cornea Company Follow:

Cornea Company

Imcome Statements

For years Ended December 31

  2019 2018
Fees earned  $1,640,000 $1,300,000
Operating Expenses  869,200 715,000
Operating Income  $770,800 $585,000

a. Prepare a vertical analysis of Cornea Company;s income statements.

b.Does the vertical analysis indicate a favorable or ab unfavourable trend ?

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