Fuller Company
Income Statements
For Years Ended December 31
2014 2013
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
2014 2013
Increase/(Decrease)
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%