5. Fill up the following tables. (12 points) a) Using Apple's income statement information of the fiscal year of 2019 and 2018, conduct horizonal analysis below using the year of "2018" as the base year- (s in millions) Items 2019 2018 Amount Percent Net sales $260,174 $265,595 Cost of sales 161,782 163,756 Gross margin 98,392 101,839 5 Operating expenses: Research and development Selling, general and administrative Total operating expenses Operating income Other income/expense), net Income before provision for income taxes Provision for income taxes Net income 16,217 18,245 34,462 63,930 1,807 65,737 14,236 16,705 30,941 70,898 2,005 72,903 10,481 $55,256 13,372 $59,531 b) Using Apple's income statement information of the fiscal year of 2019 and 2018, conduct vertical analysis below using "Net sales" as the base amount - Items 2019 Percent 2018 Percent Net sales $260,174 $265,595 Cost of sales 161,782 163,756 Gross margin 98,392 101,839 Operating expenses: Research and development 16,217 14,236 Selling, general and administrative 18,245 16,705 Total operating expenses 34,462 30,941 Operating income 63,930 70,898 Other income/(expense), net 1,807 2,005 Income before provision for income 65,737 72,903 taxes Provision for income taxes 10,481 13,372 Net income $55,256 $59,531