Income statement for the financial year ended August 31for Fiona Frolickers is as follows:

Required:

(A) Perform horizontal analysis on the income statement. Round to closest percent (e.g36.5%to 37%)

(B) Comment on the significant changes disclosed by the comparative statement of comprehensive income.

(C) Prepare a Statement of Retained Earnings for the year ended August 31, 2015. (Retained earnings at September1, 2014 were$69,000, dividends declared and paid during the financialyearwere$28,000.

(D) Explain how profits for the year ended August 31, 2014 were$93,000 yet Retained Earnings at September1, 2014 wereonly$69,000.

Sales Cost of goods sold Gross Profit Selling expense Administrative expenses Finance Expenses Income tax expense Profit 2015 $600,000 390,000 210,000 70,000 75,000 8,000 25,000 32,000 2014 $550,000 278,000 272,000 79,000 70,000 4,000 26,000 93,000