Exercise 13-1A (Algo) Horizontal analysis LO 13-1 Thornton Corporation reported the following operating results for two consecutive years: Required a. Compute the percentage changes in Thornton Corporation's income statement components between the two years. (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).) THORNTON CORPORATION Income Statements Year 3 Year 2 Percentage Change 22.6% 24.5 Sales Cost of goods sold Gross margin Operating expenses Income before taxes Income taxes Net Income (loss) $ 1,296,000 $1,003,000 797,040 601,800 498,960 401,200 301,500 196,000 197 460 205,200 61,000 52,900 $ 136 460 $ 152,300 (1.5) 3.6 20.4 5.2 (4.7%