Horizontal analysis OBJ. 5 Two income statements for Paragon Company follow:

Paragon Company Income Statements For Years Ended December 31 2016 2015 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.