Below is the comparative income statement of Industrial Supply, Inc.

Requirements
1. Prepare a horizontal analysis of the comparative income statement of Industrial Supply, Inc. Round percentage changes to the nearest tenth of a percent.
2. Why did net income increase by a higher percent than total revenues increased during2012?

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Industrial Supply, Inc. Comparative Income Statement Years Ended December 31, 2012 and 2011 2012 2011 Revenue Expenses: Cost of Goods Sold Seling and General Expenses Interest Expense Income Tax Expense Total Expenses Net Income $510,000 S460,000 225,000 2 110,000 220,500 90,000 49,500 22,500 50,000 415,000 S 95,000 S 77,500