1.Donald Corp. Reported the following on its comparative income statement (in millions):

2017 2016 2015

Revenue $728 $675 $500

Cost of goods sold 312 258 220

Prepare horizontal analysis of revenues and cost of goods sold, both in dollar amount and in percentage, for 2016 and 2017. (round percentage answers to two decimal places.)

2.New bury Offices Supply reported the following gross profit percentage:2014: 37.5%; 2015: 36.2%; 2016: 20.8%. The industry average is 35%. What are some possible reasons for the decline in 2016?