The comparative condensed income statements of Hendi Corporation are shown below.

Hendi Corporation Comparative Condensed Income Statements For the Years Ended December 31 2014 2013 Net sales $600,000 $500,000 Cost of goods sold 468,000 400,000 Gross profit 132,000 100,000 Operating expenses 60,000 54,000 Net income $ 72,000 $ 46,000 Instructions

(a) Prepare a horizontal analysis of the income statement data for Hendi Corporation using 2013 as a base. (Show the amounts of increase or decrease.)

(b) Prepare a vertical analysis of the income statement data for Hendi Corporation in columnar form for both years.