Reference no: EM132474146

Question a1. Identify any favorable and unfavorable trends in the following income statement by preparing a vertical analysis. Please round percentages to two decimal places.

                          Becker Corporation Income Statements For the Years Ended December 31, 2015 and 2016

                                                  2016                            2015

Sales                                         $394,000                     $212,500

Operating expenses:

Wages expense                               $ 79,000                     $ 65,000

Rent expense                                    19,000                         18,000

Utilities expense                                 21,000                        14,200

Interest expense                                   7,500                          7,800

Total operating expenses                        $126,500                       $105,000

Net income                                          $267,500                        $107,500