Anderson Company had the following income statement to be used in horizontal analysis:

 

Required:

Examine sales and compute the following. Indicate for each whether the change is an increase or a decrease:

1. Compute the change in dollar amount from 2018 to 2019.
2. 
   
3. Compute the percentage change from 2018 to 2019.

Sales Cost of Goods Sold Gross Profit Operating Expenses Income Before Taxes Income Tax Expense Net Income 2019 $ 1,050,000 441,000 609,000 404,900 204,100 81,640 $ 122,460 1 2018 $1,000,000 400,000 600,000 420,000 180,000 72,000 $ 108,000