Vertical analysis Obj. 7 Two income statements for Cornea Company follow:

Cornea Company Income Statements For the Years Ended December 31 20Y9 20Y8 Fees earned Expenses Net income $1,640,000 (869,200)
$1,300,000 (715,000)
$ 770,800 $ 585,000

a. Prepare a vertical analysis of Cornea Company’s income statements.

b. Does the vertical analysis indicate a favorable or an unfavorable trend?AppendixLO1