Two Income Statements for Midnight Enterprises Are Shown Below:
Midnight

question 24

Essay

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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Definitions:

Social Support

The feeling and reality of being looked after, appreciated, and integrated into a community of communication and shared responsibility.

Stressful Events

Situations or occurrences that cause strain or tension, typically resulting in physical or emotional stress.

Emotion-focused Coping

Strategies aimed at managing and reducing the intensity of negative emotions associated with stress rather than trying to solve the stressor itself.

Social Support

The perception and actuality of being cared for, valued, and part of a network of communication and mutual obligation.