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

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%