2.) The income statements for Federer Sports Apparel for 2025 and 2024 are presented below.

Required: Prepare a horizontal analysis for 2025 using 2024 as the base year. (Decreases should be indicated with a minus sign. Round your percentage answers to 1 decimal place.)

FEDERER SPORTS APPAREL
Income Statement
For the Years Ended December 31
	Year		Increase (Decrease)
	2025	2024	Amount	%
Net sales	$18,300,000	$15,000,000
Cost of goods sold	13,395,600	6,705,000
Gross profit	4,904,400	8,295,000
Operating expenses	1,464,000	1,080,000
Depreciation expense	878,400	878,400
Inventory write-down	109,800
Loss (litigation)	1,372,500	360,000
Income before tax	1,079,700	5,976,600
Income tax expense	347,700	1,860,000
Net income	$732,000	$4,116,600