Vertical analysis Two income statements for Cornea Company follow: Cornea Company Income Statements For the Years Ended December 31 20Y9 20Y8 $1,640,000 $1,300,000 (869,200) (715,000) $770,800 $585,000 Fees earned Expenses Net income Required: a. Fees earned vertical analysis of Cornea Company's income statements. Cornea Company Income Statements For the Years Ended December 31 20Y9 Amount $1,640,000 (869,200) $770,800 Percent Amount % $1,300,000 (715,000) $585,000 % 20Y8 % Percent Expenses Operating income b. Does the vertical analysis indicate a favorable or an unfavorable trend? % % % 4

Vertical analysis Two income statements for Cornes Company follow a. Prepare a vertical analysis of Comes Company's income statements. Cornea Conpany b. Does the vertical analysis indicate a favorable or an unfavorable trend