COMPUTER TYCOON, INC. Horizontal Analysis of Income Statements For the Years Ended December 31 Change in 2017 2016 Dollars Percentage Sales revenues Costs of goods sold Gross profit $ 97,500 $ 122,469 $ (24,969) 1.3 % 60,000 73,481 (13,481) 1.2 % 37,500 48,988 (11,488) 1.3 % Selling, General, and Administrative expenses 35,200 35,200 0 0.0 % Interest expense 400 320 80 0.8 % Income before income tax expense 1,900 13,468 (11,568) 7.0 % Income tax expense 800 4,907 (4,107) 6.1 % Net income $ 1,100 $ 8,561 $ (7,461) 7.7%