Prepare vertical analysis of Newman Company income statement

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Problem - Vertical analysis - Two income statements for Newman Company are shown below.

Newman Company Income Statements For Years Ended December 31

 

2012

2011

Fees earned

$405,000

$375,000

Operating expenses

263,500

225,000

Opting income

$141,500

$150,000

Required -

a. Prepare a vertical analysis of Newman Company's income statements.

b. Does the vertical analysis indicate a favorable or unfavorable trend?

Reference no: EM132679820

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