Horizontal Analysis Two income statements for Paragon Company are shown below. P

ID: 2610658 • Letter: H

Question

Horizontal Analysis Two income statements for Paragon Company are shown below. Paragon Company Income Statements For Years Ended December 31 2019 2018 Fees earned Operating expenses Net income $1,200,000 1.044,000900,000 $372,000 $300,000 $1,416,000 Prepare a horizontal analysis of Paragon Company's income statements. Paragon Company Income Statements For Years Ended December 31 Amount Percent Increase/ Increase/ 2018 ecrease) (Decrease) 2019 Fees earned $1,416,000 $1,200,000 Operating expenses 1,044,000 900,000 $372,000 $300,000 Net income My

Explanation / Answer

Horizontal Analysis

Paragon Company

Income statements

For Years Ended December 31

Particulars

2019

2018

Amount Increase/(Decrease)

Percent Increase/(Decrease)

Fees Earned

$1,416,000

$1,200,000

$216,000

($216000/$1200000)*100 =18%

Operating Expenses

$1,044,000

$900,000

$144,000

($144000/$900000)*100 =16%

Net Income

$372,000

$300,000

$72,000

($72000/$300000)*100 =24%