Using the following information, prepare a vertical analysis of two years' income statements. Fees Earned is $153,500 for Year 2and $149,700 for Year 1. Operating expenses are $122,800 for Year 2 and $127,245 for Year 1. Which of the followingstatements is true?O a. Operating expenses have increased as a percent of revenue.O b. Operating income has decreased as a percent of revenue.O c. Operating expenses has remained constant as a percent of revenue.O d. Operating income has increased as a percent of revenue.

The vertical analysis analyse the financial statements of the business for the one accounting period…

Using the following information, prepare a vertical analysis of two years' income statements. Fees Earned is $153,500 for Year 2 and $149,700 for Year 1. Operating expenses are $122,800 for Year 2 and $127,245 for Year 1. Which of the following statements is true? a. Operating expenses have increased as a percent of revenue. O b. Operating income has decreased as a percent of revenue. O c. Operating expenses has remained constant as a percent of revenue. O d. Operating income has increased as a percent of revenue.

Using the following information, prepare a vertical analysis of two years' income statements. Fees Earned is $153,500 for Year 2 and $149,700 for Year 1. Operating expenses are $122,800 for Year 2 and $127,245 for Year 1. Which of the following statements is true? a. Operating expenses have increased as a percent of revenue. O b. Operating income has decreased as a percent of revenue. O c. Operating expenses has remained constant as a percent of revenue. O d. Operating income has increased as a percent of revenue.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter2: Analyzing Transactions

Section: Chapter Questions

Problem 23E: The following data (in millions) are taken from the financial statements of Target Corporation: a....

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