Vertical Analysis Two income statements for Cornea Company follow: Cornea Company Income Statements For Years Ended December 31 2019 2018 Fees earned $680,000 $576,000 Operating expenses 482,800 420,480 Operating income $197,200 $155,520 Prepare a vertical analysis of Cornea Company's income statements. Enter percents as whole numbers.

Cornea Company

Income Statements For Years Ended December 31

2019 2018

Amount Percent Amount Percent

Fees earned $680,000 100% $576,000 100%

Operating expenses $482,800 71% $420,480 73%

Operating income $197,200 29% $155,520 27%

Operating expense working

2019 = 482,800/680,000 * 100/1 = 71% = 0.71

2018 = 420,480/576,000 * 100/1 = 73% = 0.73

Operating Income working

2019 = 1 - 0.71 = 0.29 = 29%

2018 = 1 - 0.73 = 0.27 = 27%