Freddys Fried Chicken provides you with the following information from 2 successive months of his operation:

Using the above information, complete the following

a. Convert the income statement to common-size vertical analysis

b. Convert the income statement to a comparative horizontal analysis

c. With this information and the added information that a total of 20,000 guests were served in Month 1 and 22,000 in Month 2, comment on Freddys operating results for the 2 months.

d. Compare the information you received from the common-size vertical analysis and the comparative horizontal analysis.

Month 1 Month 2 $213.500 74.000 $287,500 Sales revenue-food Sales revenue-beverage Total Sales Revenue Cost of sales-food Cost of sales-beverage Labor expense Other expenses Total expenses Operating Income [BT] $199,000 72.000 $271,000 $ 71,500 16,900 76,000 77,000 $241,400 $ 29,600 $ 82,000 19.900 85,000 82,000 $268,900 $ 18,600