The Miami Rockies, a recently transplanted baseball franchise, reported the following income statement and horizontal percentages:

1999 Amount Percentage Changes

(Hundreds of $) During 2000 Revenues $ 6,500 +10%

Operating expenses (4,800) + 8%

Operating income $ 1,700 ?

Income tax (40%) (680) ?

Net income $ 1,020 ?

Required

a. Complete the “Percentage Changes during 2000”column and determine the dollar amounts reported in the Rockies’ 2000 income statement.

b. Prepare a vertical analysis of the income statements for both 1999 and 2000.

c. Comment on any apparently favorable or unfavorable changes between 1999 and 2000, revealed by your analyses in parts a and b.