b) Consider the percentage changes in each item independently and relative to related items, and write your comment on whether the changes are Favorable or Unfavorable. (15 pts, 100 words)

QUESTION 1- (35 pts) Income statement of ABC company is given below: 2021 2018 2017 2020 2019 $11,250 $7,500 $4,500 $3,750 $13,500 3,750 2,700 1,950 1,650 1,125 9,750 8,550 5,550 2,850 2,625 6,000 3,900 2,550 1,350 1,200 3,750 4,650 3,000 1,500 1,425 Sales Revenue COGS (-) Gross Profit Operating Expenses (-) Net Profit a) Show the year-to-year changes in percentages (20 pts) 2020 Sales Revenue COGS Gross Profit Operating Expenses Net Profit 2021 0.20 0.39 0.14 0.54 -0.19 0.50 0.38 0.54 0.53 0.55 2019 0.67 0.18 0.95 0.89 1 + 2018 0.20 0.47 0.09 0.13 0.05