2018 2017 Difference Horizontal Analysis Sales Cost of goods sold Gross profit Operating expenses $485,625 $462,500 222,694 208,125 262,931 254,375 Salaries and wages expense Depreclation expense Other operating expenses 147,979 146,350 9,100 42,925 213,765 198,375 56,000 17,600 48,186 Total operating expenses Income from operations 49,166 Other expenses 0 0 0 56,000 14,000 $37,002 $42,000 413 2,500 2,913 46,253 9,251 Interest expense Loss on disposal of plant assets Total other expenses Income before income tax Income tax expense Net income