Assume the average cost of computer equipment fell 17.0 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 $98,500 60,500 2016 $116,544 69,926 Gross Profit Selling, General, and Administrative Expenses Interest Expense 38 , 34,100 536 46,618 34,100 424 Income Before Income Tax Expense Income Tax Expense 3,364 2,096 12,094 4,068 Net Income $ 1,268 $ 8,026 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 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 2016 $ % Sales revenues Costs of goods sold Gross profit Selling. General and Administrative expenses Interest expense Income before income tax expense Income tax expense 2017 98,500 $ 60,500 38,000 34,100 536 3,364 2,096 1.268 $ 116,544 69,926 46,618 34,100 424 12,094 4,068 % % % % Net income $ 8,026 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.) es 2016 % $ 116,544 % 69.926 COMPUTER TYCOON, INC. Vertical Analysis of Income Statements For the Years Ended December 31 2017 Sales revenues $ 98,500 Costs of goods sold 60,500 Gross profit 38,000 Selling, General, and Administrative expenses 34,100 Interest expense 536 Income before income tax expense 3,364 Income tax expense 2,096 Net income S 1,268 % 46,618 % 34,100 424 % % 12 094 4,068 % % $ 8,026 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