Course Hero C Cross-referencing is useful in assuring Mour question was and ano Two income statements for Danielle's Design Services are shown below: Danielle's Design Services Income Statement For Years 1 and 2 Ending December 31 Fees earned Year 2 $765,340 Year 1 $696,520 Operating expenses: Wages expense $254,000 $214,600 Rent expense 120,000 100,000 Supplies expense 76,500 98,715 Miscellaneous expense 11,680 16,420 Total operating expenses $462,180 Net income $303,160 $437,735 $258,785 a. Prepare a vertical analysis of Danielie's Design Services income statements. Determine total operating expenses percentage by adding the expense percentages Determine the net income percentage by deducting total operating expenses percentage from fees earned percentage. If required, round your percentages to one decimal place. Do not enter the percent sign. Danielle's Design Services Income Statements For Years 1 and 2 Ending December 31 Year 2 Year 2 Amount Percent Year 1 Year 1 Amount Percent Fees earned $765,340 % $696,520 Operating expenses: Wages expense 254,000 196 214,600 % Rent expense 120.000 1% 108.000 All work saved. Previous Next > Submit Test for Grading 98,715 Miscellaneous expense 11,680 16,420 Total operating expenses Net income $462,180 $303,160 $437,735 $258,785 a. Prepare a vertical analysis of Danielle's Design Services income statements. Determine total operating expenses percentage by adding the expense percentages Determine the net income percentage by deducting total operating expenses percentage from fees earned percentage. If required, round your percentages to one decimal place. Do not enter the percent sign. Danielle's Design Services Income Statements For Years 1 and 2 Ending December 31 Year 2 Amount Percent Fees earned $765,340 Year 2 Year 1 Amount % $696,520 Year 1 Percent Operating expenses: Wages expense 254,000 1% 214,600 Rent expense 120,000 1% 108,000 Supplies expense 76,500 % 98,715 Miscellaneous expense Total operating expenses $462,180 11,680 16,420 $437,735 Net income $303,160 % $258,785 b. What types of trends are indicated: favorable or unfavorable? The vertical analysis shows both favorable and unfavorable trends. The supplies expense and miscellaneous expense are both an in wages expense is The in Rent expense as a percentage of fees earned stayed relatively constant. The net result is in net income as a percentage of fees earned. All work saved. Previous Next Submit Test for Grading