Vertical analysis OBJ. 5 Two income statements for Cornea Company follow:

Cornea Company Income Statements For Years Ended December 31 2016 2015 Fees earned $1,640,000 $1,300,000

Operating expenses 869,200 715,000 Operating income $ 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?
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