Refer to the calculations from M13-1. What are the two most significant year-over-year changes in terms of dollars and in terms of percentages? Give one potential cause of each of these changes.

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LOCKEY FENCING CORPORATION Income Statements For the Years Ended December 31 2017 2016 Net Sales $100,000 $75,000 Cost of Goods Sold 58,000 45,000 Gross Profit 42,000 30,000 Selling, General, and Administrative Expenses 9,000 4,500 Income from Operations 33,000 25,500 Interest Expense 3,000 3,750 Income Before Income Tax 30,000 21,750 Income Tax Expense 9,000 6,525 Net Income $ 21,000 $15,225