MC Tutoring Plus Income Statement July 31, 20X1 Account 20X6 20X5 Horizontal Analysis Sales $87,950 $75,840 Cost of goods sold $30,520 $32,150 Gross profit $57,430 $43,690 Selling expenses $15,150 $13,020 General and administrative expenses $8,490 $8,290 Total operating expenses $23,640 $21,310 Operating income $33,790 $22,380 Other income, net $5,000 $3,500 Net income $38,790 $25,880