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. Fill up the following tables. a) Using Apples income statement information of the fiscal year of 2019 and 2018, conduct horizonal analysis below using

. Fill up the following tables.

a) Using Apples income statement information of the fiscal year of 2019 and 2018, conduct horizonal analysis below using the year of "2018" as the base year

($ in millions)

Items

2019

2018

Amount

Percent

Net sales

$260,174

$265,595

Cost of sales

161,782

163,756

Gross margin

98,392

101,839

Operating expenses:

Research and development

16,217

14,236

Selling, general and administrative

18,245

16,705

Total operating expenses

34,462

30,941

Operating income

63,930

70,898

Other income/(expense), net

1,807

2,005

Income before provision for income taxes

65,737

72,903

Provision for income taxes

10,481

13,372

Net income

$55,256

$59,531

b) Using Apples income statement information of the fiscal year of 2019 and 2018, conduct vertical analysis below using Net sales as the base amount -

Items

2019

Percent

2018

Percent

Net sales

$260,174

$265,595

Cost of sales

161,782

163,756

Gross margin

98,392

101,839

Operating expenses:

Research and development

16,217

14,236

Selling, general and administrative

18,245

16,705

Total operating expenses

34,462

30,941

Operating income

63,930

70,898

Other income/(expense), net

1,807

2,005

Income before provision for income taxes

65,737

72,903

Provision for income taxes

10,481

13,372

Net income

$55,256

$59,531

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