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