Interpreting Horizontal Analysis results

You have been analyzing your company's performance over the past few years and decided to conduct a horizontal analysis. Your results are above.

1. Some of the results are causing you concern. What are these and why do they concern you?

2. What caused your Net Income to increase so much more than the increase in Net Sales?

\begin{tabular}{||l|r|r|r|} \hline Income Statement (\$M) & \multicolumn{1}{|c||}{2021} & \multicolumn{1}{|c||}{2020} & % Change \\ \hline Net Sales & 250.40 & 220.80 & 13.4% \\ \hline \hline Cost of Goods Sold & 131.95 & 123.50 & 6.8% \\ \hline \hline Gross Profit & 118.45 & 97.30 & 21.7% \\ \hline \hline SG\&A Expenses & 65.50 & 55.30 & 18.4% \\ \hline \hline Operating Income & 52.95 & 42.00 & 26.1% \\ \hline Interest Expense & 13.30 & 10.20 & 30.4% \\ \hline |ncome Tax Expense & 12.60 & 11.90 & 5.9% \\ \hline Net Income & 27.05 & 19.90 & 35.9% \\ \hline \hline \end{tabular}