Complete the vertical analysis given data for the XYZ Company

XYZ Company
Income Statement
For the year ended
	12/31/15	Vertical Analysis	12/31/14	Vertical Analysis
Net sales	$435,760		$335,200
Cost of goods sold	135,465		105,230
Gross profit	300,295		229,970
Research & development	50,000		55,000
Selling expenses	49,400		38,000
Administrative expenses	156,900		142,100
Depreciation expense	74,000		36,000
Patent amortization expense	4,000		333
Income (loss) from operations	-34,005		-41,463
Other revenue (expense), net	-25,400		427
Net income (loss)	($59,405)		($41,036)
* Comprised mostly of Interest Expense for 2015
Comment on the significance of the trend results: