4 E13-3 Preparing and Interpreting a Schedule for Horizontal and Vertical Analyses [LO 13-2, LO 13-3, LO 13-5) 15 points According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 3.8 percent between January and December 2016. Required: eBook 1. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages for the income statement of Computer Tycoon Inc. for the year ended December 31, 2016. 2-a. Conduct a vertical analysis by expressing each line as a percentage of total revenues. 2-b. Excluding income tax, interest, and operating expenses, did Computer Tycoon earn more profit per dollar of sales in 2016 compared to 2015? Hint Print Complete this question by entering your answers in the tabs below. he References Reg 1 Req 2A Req 2B Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages for the income statement of Computer Tycoon Inc. for the year ended December 31, 2016. (Decreases should be indicated by a minus sign. Round percentage values to 1 decimal place.) COMPUTER TYCOON, INC. Income Statements For the Year Ended December 31 Change in 2016 2015 Dollars Percentage Sales Revenue S 101,000 $ 121,500 $ 20,500 16.8% Cost of Goods Sold 60,500 71,900 11,400 15.81% Gross Profit 40,500 49,600 18.3% Selling, General, and Administrative Expenses 36,100 37,200 1,100 0.3% Interest Expense 510 480 30 0.6% 9,100 4. Required: 1. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages for the income statement of Computer Tycoon Inc. for the year ended December 31, 2016, 2-a. Conduct a vertical analysis by expressing each line as a percentage of total revenues. 2-b. Excluding income tax, interest, and operating expenses, did Computer Tycoon earn more profit per dollar of sales in 2016 compared to 2015? 15 points Complete this question by entering your answers in the tabs below. eBook Reg 1 Reg 2A Reg 2B Hint Conduct a vertical analysis by expressing each line as a percentage of total revenues. (Round percentage values to 1 decimal place.) Print c References 2015 $ % % % COMPUTER TYCOON, INC. Income Statements For the Year Ended December 31 2016 Sales Revenue $ 101.000 Cost of Goods Sold 60,500 Gross Profit 40,500 Selling, General, and Administrative Expenses 36,100 Interest Expense 510 Income before Income Tax Expense 3,890 Income Tax Expense 1.000 Net Income $ 2.890 121,500 71,900 49,600 37,200 % % % % 480 % % % 11,920 5,100 6,820 % $ %