1 Assume the average cost of computer equipment fell 21.6 percent between 2016 and 2017. Let's see whether these changes are reflected in the income statement of Computer Tycoon Inc. for the year ended December 31, 2017. 2017 2016 ints Sales Revenues $100,000 Cost of Goods Sold 61,500 $124,121 74,473 Gross Profit 38,500 eBook Selling, General, and Administrative Expenses Interest Expense 31,000 560 49,648 31,000 400 Print Income Before Income Tax Expense References 18,245 5,242 Income Tax Expense Net Income 5 3,940 $12,506 Check m Required: 1-a. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages. (Round your "Percentage" to 1 decimal place. Any decrease in amounts should be indicated with minus sign) COMPUTER TYCOON, INC. Horizontal Analysis of Income Statements Pray Next > ces 1-a. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages (Round your "Percentage" to 1 decimal place. Any decrease in amounts should be indicated with minus sign) COMPUTER TYCOON, INC. Horizontal Analysis of Income Statements For the Years Ended December 31 Sales revenues Costs of goods sold Gross profit Selling, General, and Administrative expenses Interest expense Income before income tax expense Income tax expense Net income Change in 2017 2016 Dollars Percentage $ 100,000 $ 124,121 61,500 74,473 38,500 49,648 31,000 31,000 560 400 6.940 18.248) 3.000 5,742 $ 3.940 $ 12.506 Next> Ch 2-8. Conduct a vertical analysis by expressing each line as a percentage of total revenues. (Round your answers to 1 decimal place. Input all amounts as positive values.) COMPUTER TYCOON, INC. Vertical Analysis of Income Statements For the Years Ended December 31 2017 2016 Sales revenues $ 100,000 % $ 124,121 Costs of goods sold 61,500 +% 74,473 Gross profit 38,500 % 49,648 Selling, General, and Administrative expenses 31,000 % 31,000 Interest expense 560 % 400 6,940 % 18,248 Income before income tax expense 3,000 % 5,742 Income tax expense $ 3,940 % $ 12,506 Net income C 5 points Interest expense Income before income tax expense Income tax expense eBook Net income Print References 560 % 400 6,940 % 18,248 3,000 % 5,742 $ 3,940 % $ 12,506 2-b. Excluding income tax, interest, and selling, general, and administrative expenses, did Computer Tycoon earn more profit per dollar of sales in 2017 compared to 2016? No O Yes