Two income statements for Midnight Enterprises are shown below. Midnight Enterprises Income Statements For the Years Ended December 31 Year 2 Year 1 Amount Percentage Amount Percentage Fees earned $674,350 $520,600 Operating expenses 472.045 338.390 Operating income $202,305 $182,210 (a) Prepare a vertical analysis of Midnight Enterprises' income statements. Round all percentages to one decimal place in percent form. (b) Does the vertical analysis indicate a favorable or unfavorable trend?

Two income statements for Midnight Enterprises are shown below. Midnight Enterprises Income Statements For the Years Ended December 31 Year 2 Year 1 Amount Percentage Amount Percentage Fees earned $674,350 $520,600 Operating expenses 472.045 338.390 Operating income $202,305 $182,210 (a) Prepare a vertical analysis of Midnight Enterprises' income statements. Round all percentages to one decimal place in percent form. (b) Does the vertical analysis indicate a favorable or unfavorable trend?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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