Two Income Statements for Midnight Enterprises Are Shown Below:
Midnight

Two income statements for Midnight Enterprises are shown below:
Midnight Enterprises Income Statement
For Year 1 and Year 2,Ended December 31
$\begin{array}{lcc}&\underline { \text { Year 2 } } & \underline { \text { Year 1} } \\\text { Fees earned } & \$ {\$ 74,350} & \$ 520,600 \\\text { Operating expenses } & \underline{472,045} & \underline { \$ 33,390 }\\\text { Operating income } &\underline{\$ 202,305}& \underline { \$ 282,210}\end{array}$

a- Prepare a vertical analysis of Midnight Enterprises' income statements.
b- Does the vertical analysis indicate a favorable or unfavorable trend?

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a- Midnight Enterprises Income Statement...

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