Assume the average cost of computer equipment fell 22.5 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 55,000 2016 $126,000 65,000 Gross Profit Selling, General, and Administrative Expenses Interest Expense 45,000 32,000 300 61,000 32,000 280 Income Before Income Tax Expense Income Tax Expense 12,700 3,150 28,720 5,902 Net Income $ 9,550 $ 22,818 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 $ Sales revenues Costs of goods sold Gross profit Selling, General, and Administrative expenses Interest expense Income before income tax expense Income tax expense Net income 2017 100,000 $ 55,000 45,000 32,000 300 12,700 3,150 9,550 $ 2016 126,000 65,000 61,000 32,000 280 28,7201 5,902 22,818 $ 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 Sales revenues $ 100,000 Costs of goods sold 55,000 Gross profit 45,000 Selling, General, and Administrative expenses 32,000 Interest expense 300 Income before income tax expense 12,700 Income tax expense Net income $ 9,550 2016 $ 126,000 65,000 61,000 32,000 280 3,150 28,720 5,902 22,818 % $ 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? Yes No