Exercise 13-1A (Algo) Horizontal analysis LO 13-1 Finch Corporation reported the following operating results for two consecutive years: Required a. Compute the percentage changes in Finch Corporation's Income statement components between the two years. Note: Negative amounts should be indicated by a minus sign. Round your answers to 1 decimal place. (l.e., 0.234 should be entered as 23.4). Answer is complete but not entirely correct. FINCH CORPORATION Income Statements Year 3 Year 2 Percentage Change Sales $ 1,296,000 $ 1,000,500 30.0% Cost of goods sold 797,040 600,300 33.0 Gross margin 498,960 400,200 25.0 Operating expenses 302,000 196,500 54.0 Income before taxes 196,960 203,700 (3.0) Income taxes 61,100 52,400 17.00 Net income (loss) $ 135,860 151,300 (10.0)%