Two income statements for Cornea Company follow: Cornea Company Income Statements For the Years Ended December 31 20Y9 20Y8 Fees earned $1,570,000 $1,280,000 Expenses (832,100) (768,000) Net income $737,900 $512,000 Required: a. Prepare a vertical analysis of Cornea Company’s income statements. If required, round your percentage to the nearest whole number.
Two income statements for Cornea Company follow: Cornea Company Income Statements For the Years Ended December 31 20Y9 20Y8 Fees earned $1,570,000 $1,280,000 Expenses (832,100) (768,000) Net income $737,900 $512,000 Required: a. Prepare a vertical analysis of Cornea Company’s income statements. If required, round your percentage to the nearest whole number.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Two income statements for Cornea Company follow:
| Cornea Company | |||||
| Income Statements | |||||
| For the Years Ended December 31 | |||||
| 20Y9 | 20Y8 | ||||
| Fees earned | $1,570,000 | $1,280,000 | |||
| Expenses | (832,100) | (768,000) | |||
| Net income | $737,900 | $512,000 |
Required:
a. Prepare a vertical analysis of Cornea Company’s income statements. If required, round your percentage to the nearest whole number.
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Comparative balance sheet used to compare the financial statement of two or more periods. It is helpful for the management to find out the trend or direction and take appropriate action.
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