Horizontal Analysis of Income Statement

The following data (in millions) are taken from the financial statements of Tarrow Corporation.

	Recent Year		Prior Year
Revenue	$863,654		$814,000
Operating expenses	739,056		692,000
Operating income	$124,598		$122,000

a. For Tarrow Corporation, determine the amount of change in millions and the percent of change (round to one decimal place) from the prior year to the recent year for:

Revenue

Operating expenses

Operating income

	Amount of Change (in millions)	Percent of Change (round to 1 decimal place)	Increase or Decrease
1. Revenue	$	%	Increase
2. Operating expenses	$	%	Increase
3. Operating income	$	%	Increase

b. During the recent year, revenue increased and operating expenses increased . As a result, operating income increased , from the prior year.