Vera Bradley, Inc. (VRA) is a leading designer, producer, and retailer of fashion handbags, accessories, and travel items for women. Income statements for two recent years for Vera Bradley are as follows:

a. Prepare a horizontal analysis of the two income statements.
b. Assume you are a stockholder of Vera Bradley. Would you be inclined to view Vera Bradley€™s change in operating income favorably or unfavorably?

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Vera Bradley, Inc. Income Statements For the Years Ended January 31 (in millions) Year 2 Year 1 $ 502.6 $ 509.0 Revenue Expenses: Cost of merchandise sold..... Selling, general, admin. expenses other expenses Total expenses $(221.4) $(240.0) (236.8) (208.7) (16.8) (21.9) $(475.0) $(470.6) $ 27.6 $ 38.4 Operating income