Given below is two year income statements of McDonald. You are required to do vertical analysis and Horizontal analysis and identify how expenses have changed over two years?

2013 $ 18,874.2 9,231.5 28,105.7 Consolidated Statement of Income In millions, except per share data er 31, 2014 REVENUES Sales by Company-operated restaurants $ 18,169.3 Revenues from franchised restaurants 9,272.0 Total revenues 27,441.3 OPERATING COSTS AND EXPENSES Company-operated restaurant expenses Food & paper 6,129.7 Payroll & employee benefits 4,756.0 Occupancy & other operating expenses 4,402.6 Franchised restaurants-occupancy expenses 1,697.3 Selling, general & administrative expenses 2,487.9 Other operating (income) expense, net... 18.6 .. . Total operating costs and expenses 19,492.1 Operating income 7,949.2 Interest expense-net of capitalized interest of $14 570.5 Nonoperating (income) expense, net 6.7 Income before provision for income taxes 7,372.0 Provision for income taxes 2,614.2 Net income $ 4,757.8 6,361.3 4,824.1 4,393.2 1,624.4 2,385.6 (247.2).. 19,341.4 8,764.3 521.9 37.9 8,204.5 2,618.6 $ 5,585.9 2013 $ 18,874.2 9,231.5 28,105.7 Consolidated Statement of Income In millions, except per share data er 31, 2014 REVENUES Sales by Company-operated restaurants $ 18,169.3 Revenues from franchised restaurants 9,272.0 Total revenues 27,441.3 OPERATING COSTS AND EXPENSES Company-operated restaurant expenses Food & paper 6,129.7 Payroll & employee benefits 4,756.0 Occupancy & other operating expenses 4,402.6 Franchised restaurants-occupancy expenses 1,697.3 Selling, general & administrative expenses 2,487.9 Other operating (income) expense, net... 18.6 .. . Total operating costs and expenses 19,492.1 Operating income 7,949.2 Interest expense-net of capitalized interest of $14 570.5 Nonoperating (income) expense, net 6.7 Income before provision for income taxes 7,372.0 Provision for income taxes 2,614.2 Net income $ 4,757.8 6,361.3 4,824.1 4,393.2 1,624.4 2,385.6 (247.2).. 19,341.4 8,764.3 521.9 37.9 8,204.5 2,618.6 $ 5,585.9