ED-15 Performing horizontal anaylysis- income statement

Data for McCormick Deisngs, Inc. follow:

Income Statement

	2016	2015
Net Sales Revenue	$431,250	$373.000
Expenses:
Cost of Goods Sold	202,000	189,000
Selling and Administrative Expenses	100,050	92,550
Other Expenses	8,000	2,150
Total Expenses	310,050	283,700
Net Income	$121,200	$89,300

Requirements:

1. Prepard a horizontal analysis of the comparative income statement of McCormick Designs, Inc. Round percentage changes to one decimal place.

2. Why did 2016 net income increase by a higher percentage than net sales revenue?

*hint: 1. Net income 35.7%

Please list the step by step process, thank you!