Given the following Income Statement, calculate the amount of change and the percent change (horizontal analysis) from 2021 to 2022. Record these amounts in the proper space in the columns to the right of the information which is given. Round your answer to the nearest tenth.

Rainbow Paint Company

Comparative Income Statement

For the Years Ended December 31, 2021 and 2022

2022 2021 amount of change percent change

Sales $5,125,000 $3,257,600

Sales returns and allowances 125,000 57,600

Net Sales 5,000,000 3,200,000

Cost of goods sold 3,400,000 2,080,000

Gross profit 1,600,000 1,120,000

Selling expenses 650,000 464,000

Administrative expenses 325,000 224,000

Total operating expenses 975,000 688,000

Income from operations 625,000 432,000

Other income 25,000 19,200

650,000 451,200

Other expense 105,000 64,000

Income before income tax 545,000 387,200

Income tax expense 300,000 176,000

Net Income $245,000 $211,200