Two Income Statements for Toby Sam Enterprises Are Shown Below $\quad$

question 4

Multiple Choice

Two income statements for Toby Sam Enterprises are shown below: $\quad$$\quad$$\quad$$\quad$$\quad$$\text { Toby Sam Enterprises }$
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Income Statement }$
$\quad$$\text { For the Years } 2 \text { and } 1 \text { Ending December } 31$
$\begin{array}{l}\hline \begin{array}{lll}\\ \text {Fees earned }\\ \text {Operating expenses }\\ \text {Operating income}\\\end{array}\begin{array}{lll}\underline {\text { Year 2 }} \\\$ 674,350 \\\underline {472,045} \\\underline {\$ 202,305 }\\\end{array}\begin{array}{lll}\underline {\text { Year } 1}\\\$ 520,600\\\underline {338,390}\\\underline {\$ 182,210}\end{array}\end{array}$
Prepare a vertical analysis of Toby Sam Enterprises' income statements.Has operating income increased or decreased as a percentage of revenue?

• A)increased by 5%
• B)increased by 111%
• C)decreased by 5%
• D)decreased by 111%

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