CCC13 The comparative balance sheet of Cookie & Coffee Creations Inc. at October 31, 2018 for the years 2018 and 2017, and the income statements for the years ended October 31, 2017 and 2018, are presented below.

COOKIE & COFFEE CREATIONS INC.

Balance Sheet

October 31

Assets		2018		2017
Cash		$ 22,324		$ 5,550
Accounts receivable		3,250		2,710
Inventory		7,897		7,450
Prepaid expenses		5,800		6,050
Equipment		102,000		75,500
Accumulated depreciation		(25,200)		(9,100)
Total assets		$116,071		$88,160
Liabilities and Stockholders Equity
Accounts payable	$ 1,150		$ 2,450
Income taxes payable	9,251		7,200
Dividends payable	27,000		27,000
Salaries and wages payable	7,250		1,280
Interest payable	188		0
Note payablecurrent portion	4,000		0
Note payablelong-term portion	6,000		0
Preferred stock, no par, $6 cumulative
3,000 and 2,800 shares issued,
respectively	15,000		14,000
Common stock, $1 par25,180
shares issued	25,180		25,180
Additional paid in capitaltreasury stock	250		250
Retained earnings	20,802		10,800
Total liabilities and stockholders equity	$116,071		$88,160

COOKIE & COFFEE CREATIONS INC.

Income Statement

Year Ended October 31

	2018		2017
Sales	$485,625		$462,500
Cost of goods sold	222,694		208,125
Gross profit	262,931		254,375
Operating expenses Salaries and wages expense	147,979		146,350
Depreciation expense	17,600		9,100
Other operating expenses	48,186		42,925
Total operating expenses	213,765		198,375
Income from operations	49,166		56,000
Other expenses Interest expense	413		0
Loss on disposal of plant assets	2,500		0
Total other expenses	2,913		0
Income before income tax	46,253		56,000
Income tax expense	9,251		14,000
Net income	$ 37,002		$ 42,000

Prepare a horizontal analysis of the income statement for Cookie & Coffee Creations Inc. using 2017 as a base year. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -12.25% or (55,000), (12.25%). Round percentages to 0 decimal places, e.g. 12%.)

2018 2017 Difference Horizontal Analysis Sales Cost of goods sold Gross profit Operating expenses $485,625 $462,500 222,694 208,125 262,931 254,375 Salaries and wages expense Depreclation expense Other operating expenses 147,979 146,350 9,100 42,925 213,765 198,375 56,000 17,600 48,186 Total operating expenses Income from operations 49,166 Other expenses 0 0 0 56,000 14,000 $37,002 $42,000 413 2,500 2,913 46,253 9,251 Interest expense Loss on disposal of plant assets Total other expenses Income before income tax Income tax expense Net income