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 2-0. 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. Reg 1 Reg 2A Reg 20 Conduct a horzontal 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 5 Sales Revenge Cost of Goods Sold Gross Profit Selling. General, and Administrative Expenses Interest Expense Income before Income Tax Expense Income Tax Expense Net Income 2016 109,000 5 64,500 44,500 36.900 590 7,010 1,500 5,510 5 2015 133,500 75,100 58,400 38,800 520 19.080 5.900 13.180 Change in Dollars Percentage % % % % % % % % $ Reg 2 > 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. 2.0. 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. Reg 1 Reg 2A Reg 20 Conduct a vertical analysis by expressing each line as a percentage of total revenues. (Round percentage values to I decimal place.) 2015 5 COMPUTER TYCOON, INC. Income Statements For the Year Ended December 31 2016 Sales Revenue 5 109.000 Cost of Goods Sold 64 500 Gross Profit 44,500 Selling. General, and Administrative Expenses 36.900 Interest Expense 590 income before Income Tax Expense 7010 Income Tax Expense 1,500 Net Income 5 5.510 % % % % 133,600 75.100 58.400 38,800 520 19.080 5,900 13,180 % % % % 56 % % % % % % $
