Using Common Size Statement of Earnings Data}

The 2018. 2017. and 2016 statements of earnings for Talton Electronics Limited follow.

\section*{Required:}
1. Calculate how much each of the revenues and expenses changed from 2016 through 2018 using horizontal analysis (in percentage terms, rounded to two decimal places). You do not need to include the actual dollar amounts shown above.
2. CONCEPTUAL CONNECTION Discuss the primary causes of Talton's increase in net income in 2017 and the decrease in 2018.
\section*{Problem

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Revenues Taltor Amusement Limited Consolidated Statements of Eamings Year Ended December 31, 2018 2017 2016 Theme parks and resorts $2,723.8 $3,299.9 $3,502.7 Filmed entertainment 2,601.4 3,127.3 3,682.4 Consumer products 752.3 1,121.6 1,493.5 $6,077.5 $7,548.8 $8,678.6 Costs and expenses Theme parks and resorts $2,263.9 $2,723.4 $2,703.7 Filmed entertainment 2,300.2 2,566.3 Consumer products 503.7 $5,067.8 804.5 $6,094.2 Operating income Theme parks and resorts Filmed entertainment Consumer products Corporate activities $ 459.9 301.2 $ 576.5 General and administrative expenses Interest expense Investment and interest income Income (loss) on investment in Asian theme park Income before income taxes Income taxes Net income 248.6 $1,009.7 $ 161.2 103.7 (121.1) $ 143.8 $ 62.1' 928.0 376.2 $ 551.8 561.0 317.1 $1,454.6 $ 150.2 130.8 (127.4) $ 153.6 13.6 1,314.6 492.3 $ 822.3 3,104.9 1,120.6 $6,929.2 $ 799.0 577.5 372.9 $1,749.4 $ 165.3 158.9 (193.6) $ 130.6 $ (520.8) 1,098.0 410.4 $ 687.6