apter 13 Saved Assume the average cost of computer equipment fell 17.4 percent between 2016 and 2017. Let's see whether these changes are reflected in the income statement of Computer Tycoon Inc. for the year ended December 31, 2017 Sales Revenues Cost of Goods Sold 2017 $99,500 61,500 2016 $117,960 70, 776 Gross Profit Selling, Genera Interest Expense and Administrative Expenses 38,000 30,000 576 47,184 30,000 460 Income Before Income Tax Expense Income Tax Expense ces 7,424 3,772 16,724 4,784 Net Income $ 3,652 $ 11,940 $ 11,940 Required: 1-a. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages. (Round your "Percentage" to 1 decimal place. Any decrease in amounts should be indicated with minus sign) COMPUTER TYCOON, INC. Horizontal Analysis of Income Statements For the Years Ended December 31 Change in Dollars Percentage 2017 2016 Sales revenues S $ % 117,960 70,776 % 99,500 61,500 38,000 30.000 47,184 Costs of goods sold Gross profit Selling General, and Administrative expenses Interest expense Income before income tax expense % 30,000 0 576 460 % 16,724 % 7,424 3,772 Income tax expense 4,784 0% Net income $ 3 652 $ 11,940 % 1-b. Not available in Connect. 2-a. Conduct a vertical analysis by expressing each line as a percentage of total revenues. (Round your answers to 1 decimal place. Input all amounts as positive values.) COMPUTER TYCOON, INC. Vertical Analysis of Income Statements For the Years Ended December 31 2017 2016 Sales revenues $ % $ 117 960 % % % Costs of goods sold Gross profit Selling, General, and Administrative expenses 99,500 61,500 38,000 30,000 576 70,776 47 184 % % % 30.000 OA Interest expense % 460 % Income before income tax expense 7,424 % 16.724 Income tax expense % 96 3,772 3,652 Net income 4,784 11,940 $ % $ 9% 2-b. Excluding income tax, interest, and selling, general, and administrative expenses, did Computer Tycoon earn more profit per dollar of sales in 2017 compared to 2016? O Yes O No