Comparative Income Statements 2016 $ 2016% 2017 $ 2017% 2018 $ 2018% Sales COGS Gross margin Operating expenses Operating income Interest expense Income before taxes Income taxes (40%) Net income 599,100 291,000 308,100 106,200 201,900 11,200 190,700 76,280 114,420 538,900 259,200 279,700 104,600 175,100 10,500 164,600 65,840 98,760 508,100 234,300 273,800 104,100 169,700 11,900 157,800 63,120 94.680 Patel's Fabrics Ltd. Comparative Balance Sheets 2016 $ 2016% 2017 $ 2017% 2018 $ 2018% Assets Cash A/R (net) Inventory Prepaid expenses Total current assets Capital assets (net) Total assets 32,000 126,860 60,000 11,000 229,860 668,900 898,760 25,800 127,000 80,700 10,000 243,500 576,000 819,500 20,500 94,300 56,000 4,600 175,400 540,300 715,700 Liabilities & Shareholders' Equity Accounts payable Accrued expenses Total current liabilities Long-term debt Total liabilities 53,120 11,000 64,120 170,000 234, 120 81,200 12,240 93,440 160,000 253,440 79,100 41,700 120,800 150,000 270,800 Common stock ($0.50 par value) Additional paid in capital Retained earnings Total equity Total liabilities & equity 6,000 99,000 559,640 664,640 898,760 6,000 99,000 461,060 566,060 819,500 5,000 62,000 377,900 444,900 715,700 Closing Stock Price $ 38.00 $ 35.00 $ 30.00 Required: 1. Prepare a horizontal analysis for all 3 years. Use %, not dollars. What significant changes do you see