Chapter 5 Question 1: Using the following operating data for Manchac illustrate horizontal analysis 2008 Net sales $350,000 $320,000 Cost of goods sold 200,000 180,000 Operating expenses 120,000 100,000 Net income 30,000 40,000 2007 Solution -2008 Net sales 9% 100% Cost of goods sold 11% 100% Operating expenses 20% 100% Net income -25% 100% Using the following operating data for Manchac illustrate vertical analysis for 2008 2008 2007 Net sales $350,000 $320,000 Cost of goods sold200,000 180,000 Operating expenses 120,000 100,000 Net income 30,000 40,000 2008 Net sales 100% Cost of goods sold Operating expenses Net income 9% 57% 34%