Assume the average cost of computer equipment fell 21.6 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 $100,000 61,500 2016 $124, 121 74,473 Gross Profit Selling, General, and Administrative Expenses Interest Expense 38,500 31,000 560 49,648 31,000 400 Income Before Income Tax Expense Income Tax Expense 6,940 3,000 18,248 5, 742 Net Income $ 3,940 $ 12,506 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) 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 $ $ % % % Costs of goods sold Gross profit Selling, General, and Administrative expenses Interest expense Income before income tax expense % 100,000 61,500 38,500 31,000 560 6,940 3,000 3.940 124, 121 74,473 49.648 31,000 400 18,248 5,742 12,506 % % Income tax expense % Net income $ S % 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 % $ 124.121 % $ 100,000 61,500 % 74.473 % 38,500 % 49.648 % Costs of goods sold Gross profit Selling, General, and Administrative expenses Interest expense 31,000 % 31,000 % 560 % 400 % 6.940 Income before income tax expense % % % 0 3,000 Income tax expense 18,248 5,742 12.506 S. % 3,940 $ Net income 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? No O Yes