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 Year 1 Year 2 $765,340 $696,520 Fees earned Operati Wages expense Rent expense Supplies expense Miscellaneous expense Total operating expenses Net income $254,000 120,000 76,500 11,680 $462,180 $303, 160 $214,600 108,000 98,715 16,420 $437,735 $258,785 a. Prepare a vertical analysis of Danielle's Design Services income statements Determine total operating expenses percentage by adding the ex percentages Determine the net income percentage by deducing total operating expenses percentage from fees samed percentage if required, round your percentages to one decimal place. Do not enter the percent sign 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 sion. Danielle's Design Services Income Statements For Years 1 and 2 Ending December 31 Year 2 Amount Year 2 Percent Year 1 Amount Year 1 Percent Fees samed $765,340 $696,520 Operating expenses Wages expense 254,000 214.600 Rent expense 120,000 108,000 Supplies expense 76.500 98,715 Miscellaneous expense 11.680 16,420 Total operating expenses $462,180 $437.735 Net Income 330),160 $258.785 b. What types of trends are indicated: favorable or unfavorable? The vertical analysis shows both favorable and unfavorable trends. The in supplies expense and miscellaneous expense are both staved relatively constant. The net result is in wages expense is The Rent expense as a percentage of fees earned in net income as a percentage of fees earned an