1. Prepare a horizontal analysis of the comparative income statement of Harlan ?Designs, Inc. Round percentage changes to one decimal place.

2. Why did 2016 net income increase by a higher percentage than net sales? revenue?

Requirement 1. Prepare a horizontal analysis of the comparative income statement of Harlan ?Designs, Inc. Round percentage changes to one decimal place.

Harlan Designs, Inc.

Comparative Income Statement

Years Ended December 31, 2016 and 2015

Increase (Decrease) Amount Percentage 2016 2015 Net Sales Revenue $ 429,000 $373,750 0 Expenses: Cost of Goods Sold Selling and Administrative Expenses Other Expenses Total Expenses 190,450 94,750 4,650 310,550 289,850 $ 118,450 $ 83,900 205,000 96,550 9,000 0 0 Net Income 0