Comparative income statements are available for Johanna's Fine Furs:
Required
Perform horizontal and vertical analyses on each of the items in the above comparative income statements. Round percentages to one decimal point (i.e., 10.1%).

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2012 2011 Sales $850,000 $800,000 Cost of sales 325,000 275,000 Gross profit Operating expenses Operating profit 525,000 525,000 175,000 120,000 405,000 350,000 Income tax expense 105,000 121,500 Net income $245,000 $283,500