Two income statements for Fuller Company follow:
Fuller Company
Income Statements
For Years Ended December 31
2019 | 2018
Fees earned $680,000 | $850,000
Operating expenses 541,875 | 637,500
Net income $138,125 | $212,500
Prepare a horizontal analysis of Fuller Company’s income statements.
Answer:
FULLER COMPANY
Income Statements
For Years Ended December 31
2019 2018 Amount Percent
Fees earned $680,000 $850,000 $(170,000) –20.0%
Operating expenses 541,875 637,500 (95,625) –15.0%
Net income $138,125 $212,500 $ (74,375) –35.0%