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:

1. 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. 2-a. Conduct a vertical analysis by expressing each line as a percentage of total revenues.
3. 2-b. Excluding income tax, interest, and operating expenses, did Computer Tycoon earn more profit per dollar of sales in 2016 compared to 2015?

4. 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. Lets see whether these changes are reflected in the income statement of Computer Tycoon Inc. for the year ended December 31, 2016.

   	2016				2015
   Sales Revenue		$	100,000			$	120,000
   Cost of Goods Sold			60,000				71,500
   Gross Profit			40,000				48,500
   Selling, General, and Administrative Expenses			36,000				37,000
   Interest Expense			500				475
   Income before Income Tax Expense			3,500				11,025
   Income Tax Expense			1,000				5,000
   Net Income		$	2,500			$	6,025