Vertical analysis Two income statements for Cornea Company follow: Cornea Company Income Statements For the Years Ended December 31 20Y9 20Y8 Fees earned $1,560,000 $1,360,000 Expenses (748,800) (788,800) Net income $811,200 $571,200 Required: a. Prepare a vertical analysis of Cornea Company’s income statements. If required, round your percentage to the nearest whole number. Cornea Company Income Statements For the Years Ended December 31 20Y9 20Y8 Amount Percent Amount Percent Fees earned $1,560,000 fill in the blank 1 % $1,360,000 fill in the blank 2% Expenses (748,800) fill in the blank 3 % (788,800) fill in the blank 4% Operating income $811,200 fill in the blank 5 % $571,200 fill in the blank 6% b. Does the vertical analysis indicate a favorable or an unfavorable trend?
Vertical analysis Two income statements for Cornea Company follow: Cornea Company Income Statements For the Years Ended December 31 20Y9 20Y8 Fees earned $1,560,000 $1,360,000 Expenses (748,800) (788,800) Net income $811,200 $571,200 Required: a. Prepare a vertical analysis of Cornea Company’s income statements. If required, round your percentage to the nearest whole number. Cornea Company Income Statements For the Years Ended December 31 20Y9 20Y8 Amount Percent Amount Percent Fees earned $1,560,000 fill in the blank 1 % $1,360,000 fill in the blank 2% Expenses (748,800) fill in the blank 3 % (788,800) fill in the blank 4% Operating income $811,200 fill in the blank 5 % $571,200 fill in the blank 6% b. Does the vertical analysis indicate a favorable or an unfavorable trend?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Vertical analysis
Two income statements for Cornea Company follow:
| Cornea Company | |||||
| Income Statements | |||||
| For the Years Ended December 31 | |||||
| 20Y9 | 20Y8 | ||||
| Fees earned | $1,560,000 | $1,360,000 | |||
| Expenses | (748,800) | (788,800) | |||
| Net income | $811,200 | $571,200 |
Required:
a. Prepare a vertical analysis of Cornea Company’s income statements. If required, round your percentage to the nearest whole number.
| Cornea Company | ||||||||
| Income Statements | ||||||||
| For the Years Ended December 31 | ||||||||
| 20Y9 | 20Y8 | |||||||
| Amount | Percent | Amount | Percent | |||||
| Fees earned | $1,560,000 | fill in the blank 1 | % | $1,360,000 | fill in the blank 2% | |||
| Expenses | (748,800) | fill in the blank 3 | % | (788,800) | fill in the blank 4% | |||
| Operating income | $811,200 | fill in the blank 5 | % | $571,200 | fill in the blank 6% |
b. Does the vertical analysis indicate a favorable or an unfavorable trend?
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