M13-3Interpreting Horizontal Analyses Refer to the calculations from M13-1. What are the two most significant year-over-year changes in terms of dollars and in terms of percentages? Give one potential cause of each of these changes.

M13-4Interpreting Vertical Analyses Refer to the calculations from M13-2. Which of the ratios from Exhibit 13.5 have been included in these calculations? Have these two ratios improved or deteriorated in the current year compared to the previous year?

\begin{tabular}{|l|c|c|c|c|} \hline M13-2 & Current(Amount) & Current(\%) & Previous(Amount) & Previous(\%) \\ \hline Net Sales & 100000 & 100% & 75000 & 100% \\ \hline CostofGoodSold & 58000 & 58% & 45000 & 60% \\ \hline Gross Profit & 42000 & 42% & 30000 & 40% \\ \hline Selling,General&AdmintrativeExpense & 9000 & 9% & 4500 & 6% \\ \hline IncomeFromOperations & 33000 & 33% & 25500 & 34% \\ \hline Income Expense & 3000 & 3% & 3750 & 5% \\ \hline IncomeBeforeIncomeTax & 30000 & 30% & 21750 & 29% \\ \hline IncomeTaxExpense & 9000 & 9% & 6525 & 8.70% \\ \hline Net Income & 21000 & 21% & 15225 & 20.30% \\ \hline \end{tabular}