Below is the comparative income statement of Variline, Inc.

Requirements
1. Prepare a horizontal analysis of the comparative income statement of Variline, 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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Variline, Inc. Comparative Income Statement Years Ended December 31, 2016 and 2015 2016 2016 Revenue $512,000 $464,300 Expenses: Cost of Goods Sold 236,000 257,000 118,800 Selling and General Expenses Interest Expense Income Tax Expense Total Expenses Net Income 124,300 4,000 48,800 5,000 37,700 397,500 $ 6,800 434,100 $ 77,900