M13-3 Interpreting Horizontal Analyses [LO 13-5] Use the following income statements. LOCKEY FENCING CORPORATION Income Statements For the Years Ended December 31 Current Net Sales $100,000 Cost of Goods Sold 58,000 Gross Profit 42,000 Selling, General, and Administrative Expenses 9,000 Income from Operations 33,000 Interest Expense 3,000 Income before Income Tax 30,000 Income Tax Expense 9,000 Net Income $ 21,000 Previous $75,000 45,000 30,000 4,500 25,500 3,750 21,750 6,525 $15, 225 1. What are the two most significant year-over-year changes in terms of dollars? 2. What are the two most significant year-over-year changes in terms of percentages? Required 1 Required 2 What are the two most significant year-over-year changes in terms of dollars? (Select all that apply.) Net Sales Cost of Goods Sold Gross Profit Selling, General, and Administrative Expenses Income from Operations Interest Expense Income before Income Tax Income Tax Expense Net Income Required 1 Required 2 --- - What are the two most significant year-over-year changes in terms of percentages Net Sales Cost of Goods Sold Gross Profit Selling, General, and Administrative Expenses Income from Operations Interest Expense - Income before Income Tax Income Tax Expense Net Income