Horizontal Analysis Two income statements for Paragon Compan

Horizontal Analysis Two income statements for Paragon Company are shown below. Paragon Company Income Statements For Years Ended December 31 2019 2018 Fees earned Operating expenses Net income $1,200,000 1.044,000900,000 $372,000 $300,000 $1,416,000 Prepare a horizontal analysis of Paragon Company\'s income statements. Paragon Company Income Statements For Years Ended December 31 Amount Percent Increase/ Increase/ 2018 ecrease) (Decrease) 2019 Fees earned $1,416,000 $1,200,000 Operating expenses 1,044,000 900,000 $372,000 $300,000 Net income My

Solution

Horizontal Analysis

                                                                Paragon Company

                                                                Income statements

For Years Ended December 31

Particulars

2019

2018

Amount Increase/(Decrease)

Percent Increase/(Decrease)

Fees Earned

$1,416,000

$1,200,000

$216,000

($216000/$1200000)*100 =18%

Operating Expenses

$1,044,000

$900,000

$144,000

($144000/$900000)*100 =16%

Net Income

$372,000

$300,000

$72,000

($72000/$300000)*100 =24%

Particulars	2019	2018	Amount Increase/(Decrease)	Percent Increase/(Decrease)
Fees Earned	$1,416,000	$1,200,000	$216,000	($216000/$1200000)*100 =18%
Operating Expenses	$1,044,000	$900,000	$144,000	($144000/$900000)*100 =16%
Net Income	$372,000	$300,000	$72,000	($72000/$300000)*100 =24%