For 2015, Eurie Company reported its most significant decline in net income in years. At the end of the year, H. Finn, the president, is presented with the following condensed comparative income statement:

Instructions
1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 2014 as the base year. Round to one decimal place.
2. To the extent the data permit, comment on the significant relationships revealed by the horizontal analysis prepared in (1).

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Eurie Company Income Statement For the Years Ended December 31, 2015 and 2014 2015 2014 $928.000 Sales.. $800,000 Sales returns and allowances 70,000 50,000 750.000 Net sales..... Cost of goods sold Gross profit . Selling expenses Administrative expenses Total operating expenses. Income from operations 858.000 640.000 500.000 218.000 250.000 85.800 65,000 43,400 35,000 129.200 100.000 88,800 150,000 Other income 16.000 10.000 Income before income taxes. 104,800 160,000 15,700 Income taxes expense.. 24.000 $ 89.100 Net income .. $136.000