Fano Fabricating, Inc. and Spinoza Fabrication Corp. are in the same industry and are located in the same region of the country. They have condensed income statements as shown. Faso Fabricating, Inc. Spinoza Fabrication Corp. Year 2 Year 1 Year 2 Year 1 Sales $362,000 $338,000 $422,000 $395,000 Total operating expenses Net income 285,000 $77,000 245,000 $93,000 305,000 285,000 $117,000 $110,000 a. Prepare a horizontal analysis for the two companies, Round percentages to one decimal place. Faso Fabricating, Inc. Year 2 Year 1 Increase/ Decrease Sales $362,000 $338,000 Total operating expense 285,000 245,000 Net income $77,000 $93,000 Percent L Spinoza Fabrication Corp. Year 2 Year 1 Increase/ Decrease Percent % $422,000 % 305,000 % $117,000 $395,000 285,000 $110,000 % % % b. Analyze the changes from Year 1 to Year 2 for both companies. Faso had the percentage sales growth from Year 1 to Year 2. Total operating expenses for both companies grew at a than the growth in sales. For Faso, the large percentage percentage in operating expenses resulted in a substantial decline in net income from Year 1 to Year 2