For 2016, Clapton Company reported a decline in net income. At the end of the year, S. Hand, 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 2015 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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Clapton Company Comparative Income Statement For the Years Ended December 31, 2016 and 2015 2016 2015 Sales... . Gross profit .. Administrative expenses. $4,270,000 $4,000,000 625,000 500,000 110,000 100,000 Income tax expense 50,000 $2,435,000 $2,550,000 60,000