Two income statements for Danielle\'s Design Services are shown below: Danielle\

Question

Two income statements for Danielle's Design Services are shown below: Danielle's Design Services Income Statement For Years 1 and 2 Ending December 31 Year 2 Year 1 Fees earned $765,340 $696,520 Operating expenses: Wages expense Rent expense Supplies expense Miscellaneous expense Total operating expenses Net income $254,000 120,000 76,500 11,680 $462,180 $303,160 $214,600 108,000 98,715 16,420 $437,735 $258,785 a. Prepare a vertical analysis of Danielle's Design Services income statements. Determine total operating expenses percentage by adding the expense percentages. Determine the net income percentage by deducting total operating expenses percentage from fees earned percentage. If required, round your percentages to one decimal place. Do not enter the percent sign Danielle's Design Services Income Statements For Years 1 and 2 Ending December 31 Year 2 Amount Year 2 Percent Year 1 Amount Year 1 Percent

Explanation / Answer

Since I cannot predict what is there in the dropdowns menu of Part B, I am unable to answer that. You can reach me via comments to let me know if you are not able to figure it out throug Part A solution

YEAR 2 YEAR 1 Fees Earned $ 765,340.00 100.0% $ 696,520.00 100.0% Wages $ 254,000.00 33.2% $ 214,600.00 30.8% Rent $ 120,000.00 15.7% $ 108,000.00 15.5% Supplies $    76,500.00 10.0% $    98,715.00 14.2% Misc Exp $    11,680.00 1.5% $    16,420.00 2.4% Total Operating Exp $ 462,180.00 60.4% $ 437,735.00 62.8% Net Income $ 303,160.00 39.6% $ 258,785.00 37.2%

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