Below is the comparative income statement of P. Donnelly, Inc.

Requirements
1. Prepare a horizontal analysis of the comparative income statement of P. Donnelly, 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 during 2016?

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P. Donnelly, Inc. Comparative Income Statement Years Ended December 31, 2016 and 2015 2016 2016 Revenue $500,000 $439,500 Expenses: Cost of Goods Sold $245,000 $236,000 Selling and General Expenses Interest Expense Income Tax Expense Total Expenses Net Income 111,000 103,500 10,000 6,500 44,400 390,400 $ 49,100 54,700 420,700 $ 79,300