Assume the average cost of computer equipment fell 23.9 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	$	101,100		$	128,704
Cost of Goods Sold		61,900			77,222
Gross Profit		39,200			51,482
Selling, General, and Administrative Expenses		30,400			30,400
Interest Expense		589			486
Income Before Income Tax Expense		8,211			20,596
Income Tax Expense		4,989			6,857
Net Income	$	3,222		$	13,739

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