Two income statements for Cornea Company follow: Cornea Company Income Statements For Years Ended December 31 2016........................2015

Question:

Two income statements for Cornea Company follow:

Cornea Company

Income Statements

For Years Ended December 31

2016........................2015

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 an unfavorable trend?

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Related Book For answer-question

Financial Accounting

ISBN: 978-1305088436

14th edition

Authors: Carl S. Warren, Jim Reeve, Jonathan Duchac

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Question Posted: Dec 19, 2016 10:41 AM

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Two income statements for Cornea Company follow: Cornea Company Income Statements For Years Ended December 31 2016........................2015

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a b A favorable trend of decreasing operating expenses and incre...View the full answer

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