Horizontal Analysis
Two income statements for Fuller Company are shown below.
Fuller Company
Income Statements
For Years ended in December
2014 2013
Fees earned 680,000 850,000
operating expenses 541,875 637,500
net income: 138,125 $212,500
Prepare a

2014 2013 Change Fees earned 680,000 850,000 -$170,000 Operating Expenses 541,875 637,500 -$95,625 Net Income 138,125 212,500 -$74,375 The horizontal analysis of Fuller Company's income statement reveals that total fees earned decreased by $170,000, operating expenses decreased by $95,625, and net income decreased by $74,375 between 2014 and 2013. This could be indicative of an overall decrease in operations or a change in company strategies that resulted in a decrease in revenue.