Below is the comparative income statement of Wellington, Inc. (Click the icon to view the comparative income statement.) Read the requirements. 1. Prepare a horizontal analysis of the comparative income statement of Wellington, Inc. Round percentage changes to the nearest tenth of a percent. 2. Why did net income increase by a higher percentage than total revenues increased during 2018? Wellington, Inc. Comparative Income Statement Years Ended December 31, 2018 and 2017 2018 2017 Revenue $520,000 $470,000 Expenses: Cost of goods sold 246,000 235,000 Selling and general expenses 115,500 110,500 Interest expense Income tax expense Total expenses Net income $ 102,800 $ 87,000 8,000 1,500 47,700 36,000 417,200 383,000 Requirement 1. Prepare a horizontal analysis of the comparative income statement of Wellington, Inc. Round percentage changes to the nearest tenth of a percent, XX%. (Use a minus sign or parentheses for a decrease.) Wellington, Inc. Horizontal Analysis of Comparative Income Statement Years Ended December 31, 2018 and 2017 Revenue Expenses: Increase (Decrease) 2018 2017 Amount Percentage $ 520,000 $ 470,000 50,000 % Cost of goods sold 246,000 235,000 11,000 % Selling and general expenses 115,500 110,500 5,000 % Interest expense 8,000 1,500 6,500 % Income tax expense 47,700 36,000 11,700 Total expenses 417,200 383,000 34,200 % 102,800 $ 87,000 15,800 Net income %