prepare a vertical analysis of bradford company rsquo s income statements 551249
PE 3-10B Vertical analysis
Two income statements for Bradford Company are shown below.
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Bradford Company |
||
|
Income Statements |
||
|
For Years Ended December 31 |
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|
2012 |
2011 |
|
|
Fees earned |
$825,000 |
$700,000 |
|
Operating expenses |
684,750 |
602,000 |
|
Operating income |
$140,250 |
$ 98,000 |
a. Prepare a vertical analysis of Bradford Company’s income statements.
b. Does the vertical analysis indicate a favorable or unfavorable trend?
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