Exercise 12-3 (Static) Prepare horizontal analysis (LO12-2) The income statements for Federer Sports Apparel for 2025 and 2024 are presented below. Required: Prepare a horizontal analysis for 2025 using 2024 as the base year. (Decreases should be indicated with a minus sign. Round your percentage answers to 1 decimal place.) FEDERER SPORTS APPAREL Income Statement For the Years Ended December 31 Year Increase (Decrease) 2025 2024 Amount % Net sales $ 18,800,000 $ 15,500,000 Cost of goods sold 13,200,000 7,000,000 Gross profit 5,600,000 8,500,000 Operating expenses 1,600,000 1,200,000 Depreciation expense 1,000,000 1,000,000 Inventory write-down 200,000 Loss (litigation) 1,500,000 300,000 Income before tax 1,300,000 6,000,000 Income tax expense 450,000 2,000,000 Net income $ 850,000 $ 4,000,000