Income statement data for Web-pics Company for the years ended December 31, 2008 and 2007, are as follows: 2008 2007 Sales 117,000 150,000 Cost of goods sold 56,000 70,000 Gross Profit 61,000 80,000 Selling expenses 36,000 37,500 Admin expenses 12,500 10,000 Total operating expenses 48,500 47,500 Income before income tax 12,500 32,500 Income tax expense 2,000 10,000 Net income 10,500 22,500 A. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for 2008 when compared with 2007. Round to once decimal place. B. What conclusions can be drawn from the horizontal analysis?

The total Net Income decrease is supposed to be 53.3 percent, but I am having a hard time coming up with this number.