Consider the following horizontal analysis of a firm’s income statement (assume that 1998 is the base year used for comparison, when all items equal 100%):

2000 1999 Net revenues Product sales 116.4% 118.2%

Product support and enhancement 124.2 177.9 Total net revenue 119.3 134.9 Operating expenses Cost of goods sold 102.8 40.2 Sales and marketing 120.7 172.1 Research, development and support 91.1 181.8 General and administrative 97.9 161.3 Total operating expenses 103.5 132.2 Income (loss) from operations 114.3 101.5