Comparative Income Statement Use the following comparative income statement form to enter amounts you identify from the computations on the Liquidity and Solvency Measures part and on the Profitability Measures part. Compute any missing amounts and complete the horizontal analysis columns. Enter percentages as decimal amounts, rounded to one decimal place. When rounding, look only at the figure to the right of one decimal place. If 5, round up. For example, for 32.048% enter 32.0%. For 32.058% enter 32.1%. Comparative Income Statement For the Years Ended December 31, 2016 and 2015 Increase/(Decrease) 2016 2015 Amount Percentage $ $7,267,000 $ Sales % Cost of goods sold (3,444,000) % Gross profit $ $3,823,000 $ % Selling expenses $ $(1,453,200) + Administrative expenses (1,239,000) (1,103,000) % Total operating expenses $(2,556,200) $ % Operating Income $1,266,800 $ Other expense interest) (120,600) % Income before income tax expense $ $1,146,200 $ % Income tax expense (179,460) % Net income $966,740 $ % Final Questions Your accountant friend reveals that the company whose information you have been working on is actually a company he is thinking of investing in. What advice and insight do you have for your friend? Using only the information from your horizontal analysis of the comparative income statement, complete the following sentences, has increased. However, has decreased significantly from 2015 to 2016, even though In addition, has increased at a faster rate. The company appears has also , which slowed the increase in Based on these observations, do you recommend that your friend invest in this company's stock? Comparative Income Statement Use the following comparative income statement form to enter amounts you identify from the computations on the Liquidity and Solvency Measures part and on the Profitability Measures part. Compute any missing amounts and complete the horizontal analysis columns. Enter percentages as decimal amounts, rounded to one decimal place. When rounding, look only at the figure to the right of one decimal place. If 5, round up. For example, for 32.048% enter 32.0%. For 32.058% enter 32.1%. Comparative Income Statement For the Years Ended December 31, 2016 and 2015 Increase/(Decrease) 2016 2015 Amount Percentage $ $7,267,000 $ Sales % Cost of goods sold (3,444,000) % Gross profit $ $3,823,000 $ % Selling expenses $ $(1,453,200) + Administrative expenses (1,239,000) (1,103,000) % Total operating expenses $(2,556,200) $ % Operating Income $1,266,800 $ Other expense interest) (120,600) % Income before income tax expense $ $1,146,200 $ % Income tax expense (179,460) % Net income $966,740 $ % Final Questions Your accountant friend reveals that the company whose information you have been working on is actually a company he is thinking of investing in. What advice and insight do you have for your friend? Using only the information from your horizontal analysis of the comparative income statement, complete the following sentences, has increased. However, has decreased significantly from 2015 to 2016, even though In addition, has increased at a faster rate. The company appears has also , which slowed the increase in Based on these observations, do you recommend that your friend invest in this company's stock