Two income statements for Paragon Company are shown below.

Two income statements for Paragon Company are shown below.


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%