Comparative income statements for Pearle Company are provided below: 2 points each/14 points

Perform a horizontal analysis of Pearle Company's income statement by computing horizontal percentages for each item. Round your answer to one decimal place (i.e. 22.5%).

	2014	2013	%
Sales	595,000	532,200
Less cost of goods sold	386,200	357,650
Gross Margin	208,800	174,550
Less operating expenses	108,950	99,770
Income before taxes	99,850	74,780
Income taxes	39,940	29,912
Net income	59,910	44,868