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Healthy Web, Inc. INCOME STATEMENT Two Years Ended December 31, 20X8 and 20X7 (in thousands) 20x8 20X7 $Change % Change Analysis of Change Revenue went up approx. 29%- we would probably want to look at the economy, the historical increase in sales, competitor growth to determine if this increase is reasonable. Revenue $19,166 $14,814 $4,352 29.4% Costs and expenses Cost of Good Sold 15,000 11,000 (Hint: compare the change in COGS to the change in revenue to see if they are increasing at approximately the same %) Product development 725 653 Sales and marketing 450 (Hint: compare the change in Sales & Marketing Exp to the change in revenue to see if they are increasing at approximately the same %) General and administrative 100 (Hint: compare the change in Gen and Admin Exp. to the change in revenue to see if they are increasing at approximately the same %) (Hint: compare the change in Interest Expense to the change in Long Term Debt to see if they are changing at approximately the same %) (Use in Information in the Q1 tab but you probably need to calculate the horizontal change for Long Term Debt) Interest Expense 18 Depreciation and amortization 560 661 (Hint: compare the change in Depreciation Expense to the change in PP&E to see if they are changing at approximately the same %) (Use in Information in the Q1 tab but you probably need to calculate the horizontal change for PP&E) 35 17.053 12.882 Impairment of intangible assets Total costs and expenses Net income before taxes Income taxes Net income (loss) $2.114 $1.932 129) $1.985 125 $1.807