For 2015, McFadden Inc. reported its most significant increase in net income in years. At the end of the year, Jane Mayer, 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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McFadden Inc. Income Statement For the Years Ended December 31, 2015 and 2014 2015 2014 Sales....... $410.000 $516.600 ......... Sales returns and allowances 12.200 10.000 Net sales...... Cost of goods sold Gross profit .... Selling expenses.. Administrative expenses Total operating expenses. Income from operations Other income 504,400 400,000 240.000 200,000 264,400 200,000 ..... 69,600 60,000 44,800 40,000 100,000 114.400 150.000 100,000 12.600 10,000 Income before income taxes 162,600 110,000 Income taxes expense. Net income 24,400 $138, 200 16,500 $ 93,500