Horizontal Analysis of Income Statement

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

	Recent Year		Prior Year
Revenue	$399,688		$376,000
Operating expenses	336,320		320,000
Operating income	63,368		56,000

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	Increase or Decrease
1. Revenue	$	%	SelectIncreaseDecreaseItem 3
2. Operating expenses	$	%	SelectIncreaseDecreaseItem 6
3. Operating income	$	%	SelectIncreaseDecreaseItem 9

b. During the recent year, revenue SelectincreaseddecreasedItem 10 and operating expenses SelectincreaseddecreasedItem 11 . As a result, operating income SelectincreaseddecreasedItem 12 , a(n) SelectfavorableunfavorableItem 13 trend from the prior year.