5) The following items were taken from the financial statements of Rug, Inc., over a four-year period: Item 2018 2017 2016 2015 Net Sales $900,000 $650,000 $600,000 $500,000 Cost of Goods Sold 580.000 460,000 420.000 400.000 Gross Profit $320,000 $190.000 $180.000 $100.000 Instructions (a) Using horizontal analysis and 2015 as the base year, compute the trend percentages for net sales, cost of goods sold, and gross profit. (5 pts) (b) Explain whether the trends are favorable or unfavorable for each item. (5 pta) 2018 2017 2016 2015 100% (a) Item Net Sales Cost of Goods Sold Gross Profit (b) EXPLANATION OF TRENDS