3) Below is the comparative income statement for Vision Company, a sole proprietorship. What is the horizontal analysis of the changes between the 2 years rounded to the nearest tenth of 1 percent.

Vision Company

Comparative Income Statements

For the Years Ended June 30, 2019 and 2020

Increase (Decrease)

2020 2019 Amount Percentage

Net Sales $360 $290

Cost of Goods Sold 224 176

Gross Profit 136 114

Operating Expenses 80 60

Operating Income 56 54

Interest Expense 14 10

Net Income $ 42 $44

What issues does this analysis suggest the company should note?