Two income statements for Fuller Company follow:Prepare a horizontal analysis of Fuller Company’s income statements.

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%