Income Statement For the Year Ended April 30 (in thousands of dollars) 2010 2009 20.08 Net sales $38, 610 532,175 $25,740 25.100 $13,510 19.950 $12,225 15400 $10, 340 7,200 6,565 5, 148 4,270 4,175 3.861 Cost of sales Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Interest expense Net income before tax Income taxes Net income $11,970 $10,740 $9,009 $ 1,540 $ 1,485 $1,331 115 $ 1,425 95 $ 1,390 $1,231 655 645 541 720 745 $590 Perform a vertical, common size analysis of the income statement. Comment on significant trends. Income Statement For the Year Ended April 30 (in thousands of dollars) Net sales Cost of sales Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Interest expense Net income before tax Income taxes Net income 2010 538, 610 25.100 $13,510 7.700 4,220 511 970 $ 1,540 125 $ 1.425 2009 $32,175 19.950 $12,225 6,565 4,125 $10.240 $1,485 95 $ 1,390 645 2008 525, 740 15.400 $10,340 5,148 3,861 59.009 $1,331 100 $1,231 541 655 Required: Perform a horizontal, common-size analysis of the balance sheet items, using 2008 as the base year. Also include a horizontal analysis of sales and net income. Comment on significant trends and relationships revealed by the computations. Income Statement For the Year Ended April 30 (in thousands of dollars) 2010 2009 20.08 Net sales $38, 610 532,175 $25,740 25.100 $13,510 19.950 $12,225 15400 $10, 340 7,200 6,565 5, 148 4,270 4,175 3.861 Cost of sales Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Interest expense Net income before tax Income taxes Net income $11,970 $10,740 $9,009 $ 1,540 $ 1,485 $1,331 115 $ 1,425 95 $ 1,390 $1,231 655 645 541 720 745 $590 Perform a vertical, common size analysis of the income statement. Comment on significant trends. Income Statement For the Year Ended April 30 (in thousands of dollars) Net sales Cost of sales Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Interest expense Net income before tax Income taxes Net income 2010 538, 610 25.100 $13,510 7.700 4,220 511 970 $ 1,540 125 $ 1.425 2009 $32,175 19.950 $12,225 6,565 4,125 $10.240 $1,485 95 $ 1,390 645 2008 525, 740 15.400 $10,340 5,148 3,861 59.009 $1,331 100 $1,231 541 655 Required: Perform a horizontal, common-size analysis of the balance sheet items, using 2008 as the base year. Also include a horizontal analysis of sales and net income. Comment on significant trends and relationships revealed by the computations