Assume the average cost of computer equipment fell 35.0 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	$	78,600		$	117,250
Cost of Goods Sold		41,000			58,000
Gross Profit		37,600			59,250
Selling, General, and Administrative Expenses		32,100			32,100
Interest Expense		563			400
Income Before Income Tax Expense		4,937			26,750
Income Tax Expense		2,931			4,426
Net Income	$	2,006		$	22,324

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

• Yes

• No