Assume the average cost of computer equipment fell 21.8 percent between 2016 and 2017. Lets see whether these changes are reflected in the income statement of Computer Tycoon Inc. for the year ended December 31, 2017.

	2017			2016
Sales Revenues	$	99,200		$	123,885
Cost of Goods Sold		61,200			74,331
Gross Profit		38,000			49,554
Selling, General, and Administrative Expenses		31,000			31,000
Interest Expense		572			260
Income Before Income Tax Expense		6,428			18,294
Income Tax Expense		3,398			5,600
Net Income	$	3,030		$	12,694

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)

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.)

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?

multiple choice

No

Yes