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Identify any favorable and unfavorable trends in the following income statements by preparing a vertical analysis. Write a paragraph explaining what you find. (Round percentages to two decimal places.) Becker Corporation Income Statements For the Years Ended December 31 Year 2 Revenues Operating expenses: Wages expense Rent expense Utilities expense Interest expense Total operating expenses Net income Year 1 $394,000 $212,500 $ 79,000 $ 65,000 19,000 18,000 21,000 14,200 7,500 7,800 $126,500 $105,000 $267,500 $107,500

Identify any favorable and unfavorable trends in the following income statements by preparing a vertical analysis. Write a paragraph explaining what you find. (Round percentages to two decimal places.) Becker Corporation Income Statements For the Years Ended December 31 Year 2 Revenues Operating expenses: Wages expense Rent expense Utilities expense Interest expense Total operating expenses Net income Year 1 $394,000 $212,500 $ 79,000 $ 65,000 19,000 18,000 21,000 14,200 7,500 7,800 $126,500 $105,000 $267,500 $107,500

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 25BEB: Jasmine Company provided the following income statements for its first 3 years of operation: Refer...
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Identify any favorable and unfavorable trends in the following income statements by preparing a vertical analysis. Write a paragraph explaining what you find. (Round percentages to two decimal places.) Becker Corporation Income Statements For the Years Ended December 31 Year 2 Revenues Operating expenses: Wages expense Rent expense Utilities expense Interest expense Total operating expenses Net income Year 1 $394,000 $212,500 $ 79,000 $ 65,000 19,000 21,000 7,500 18,000 14,200 7,800 $126,500 $105,000 $267,500 $107,500
Transcribed Image Text:Identify any favorable and unfavorable trends in the following income statements by preparing a vertical analysis. Write a paragraph explaining what you find. (Round percentages to two decimal places.) Becker Corporation Income Statements For the Years Ended December 31 Year 2 Revenues Operating expenses: Wages expense Rent expense Utilities expense Interest expense Total operating expenses Net income Year 1 $394,000 $212,500 $ 79,000 $ 65,000 19,000 21,000 7,500 18,000 14,200 7,800 $126,500 $105,000 $267,500 $107,500
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