Two income statements for Paragon Company follow:
Paragon Company
Income Statements
For Years Ended December 31
2019 | 2018
Fees earned $1,416,000 | $1,200,000
Operating expenses 1,044,000 | 900,000
Net income. $372,000 | $300,000
Prepare a horizontal analysis of Paragon Company’s income statements.
Answer:
PARAGON COMPANY
Income Statements
For Years Ended December 31
2019 2018 Amount Percent
Fees earned $1,416,000 $1,200,000 $216,000 18.0%
Operating expenses 1,044,000 900,000 144,000 16.0%
Net income $ 372,000 $ 300,000 $ 72,000 24.0%