Horizontal analysis
Two income statements for Paragon Company are shown below.
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Paragon Company |
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Income Statements |
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For Years Ended December 31 |
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2014 |
2013 |
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Fees earned |
$1,416,000 |
$1,200,000 |
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Operating expenses |
1,044,000 |
900,000 |
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Net income |
$372,000 |
$300,000 |
Prepare a horizontal analysis of Paragon Company’s income statements.