2016 2015 Amount Percentage Sales 8,280,000 $7,287,000 993,000 13.6 % Cost of goods sold 4,100,000 (3,444,000) 656,000 19.0 % Gross profit 4,180,000 $3,843,000 337,000 8.8 % 364,000 25.0 % Selling expenses Administrative expenses Total operating expenses 1,821,600 (1,242,000) 3,063,600 $(1,457,600) (1,106,000) $(2,563,600) 136,000 12.3 % 500,000 19.5 % Operating income 1,116,400 $1,279,400 163,000 12.7 % Other expense (interest) 127,000 (120,600) 6,400 5.3 % Income before income tax expense 989,400 $1,158,800 14.6 % 169,400 6,000 Income tax expense 187,980 (181,980) 3.3 % Net income 801,420 $976,820 175,400 18.0 % Final Questions Your accountant friend reveals that the company whose information you have been working on is actually a company he is thinking of investing in. What advice and insight do you have for your friend? Using only the information from your horizontal analysis of the comparative income statement, complete the following sentences has decreased significantly from 2015 to 2016, even though has increased. However, which slowed the increase in In addition, has increased at a faster rate. The company appears has also Based on these observations, do you recommend that your friend invest in this company's stock