Fabrics Ltd. ve Income Statements 2016 $ 2016% 2017 $ 2017% 2018 $ 2018% Sales 599'100 538'900 508'100 COGS 291'000 259'200 234'300 Gross margin 308'100 279700 273'800 Operating expenses 106'200 104'600 104'100 Operating income 201'900 175'100 169'700 Interest expense 11'200 10'500 11'900 Income before taxes 190'700 164'600 157'800 Income taxes (40%) 76'280 65'840 63'120 Net income 114'420 98'760 94'680 s Fabrics Ltd. tive Balance Sheets 2016 $ 2016% 2017 $ 2017% 2018 $ 2018% Assets Cash A/R (net) Inventory Prepaid expenses 32'000 25'800 20'500 126'860 127'000 94'300 60'000 80'700 56'000 11'000 10'000 4'600 Total current assets 229'860 243'500 175'400 Capital assets (net) 668'900 576'000 540'300 Total assets 898'760 819'500 715'700 Liabilities & Shareholders' Equity Accounts payable 53'120 81'200 79'100 Accrued expenses 11'000 12'240 41'700 Total current liabilities 64'120 93'440 120'800 Long-term debt 170'000 160'000 150'000 Total liabilities 234'120 253'440 270'800 Common stock ($0.50 par value) 6'000 6'000 5'000 Additional paid in capital 99'000 99'000 62'000 Retained earnings 559'640 461'060 377'900 Total equity 664'640 566'060 444'900 Total liabilities & equity 898'760 819'500 715'700 Closing Stock Price $ 38.00 $ 35.00 $ 30.00 Required: 1. Prepare a horizontal analysis for all 3 years. Use %, not dollars. What significant changes do you see