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. 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? Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Reg 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 Dollars Percentage 2016 2015 $ $ % Sales Revenue Cost of Goods Sold 102,000 61,000 41,000 123,000 72,300 % 50,700 % 37,400 % Gross Profit Selling, General, and Administrative Expenses Interest Expense Income before Income Tax Expense Income Tax Expense 36,200 520 485 % 4,280 12.815 % 5,200 % 1,000 3,280 $ Net Income $ 7,615 % Required: 1. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percenta 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? Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Req 2B Conduct a vertical analysis by expressing each line as a percentage of total revenues. (Round percentage values to 1 decimal place.) $ % 2015 123,000 72,300 50,700 37,400 COMPUTER TYCOON, INC. Income Statements For the Year Ended December 31 2016 Sales Revenue $ 102,000 Cost of Goods Sold 61,000 Gross Profit 41,000 Selling, General, and Administrative Expenses 36,200 Interest Expense 520 Income before Income Tax Expense 4,280 Income Tax Expense 1,000 Net Income $ 3,280 % % % % % % % % % % % 485 % % 12,815 1 5,200 7,615 % % $