Paso Fabricating, Inc. and Spinoza Fabrication Corp. are in the same industry and are located in the same region of the country. They have condensed Income statements as shown. Faso Fabricating, Inc. Spinoza Fabrication Corp. Year 2 Year 2 Year 1 $362,000 $338,000 Year 1 $395.000 Sales 5422,000 Total operating expenses 285,000 245,000 305,000 285,000 $110,000 Net income $77,000 $93,000 s117,000 a. Prepare a horizontal analysis for the two companies. Round percentages to one decimal place. Spinoza Fabrication Corp. Faso Fabricating, Inc. Increase/ Year 1 Decreasa Year 2 Percent Year 2 Year 1 Increase/ Decrease Percent Sales $333,000 % $422,000 $395,000 $362,000 285.000 Total operating expense 245,000 305.000 285,000 iii Net income $77.000 $93,000 % $117.000 S110,000 $ b. Analyze the changes from Year 1 to Year 2 for both companies. Faso had the percentage than the growth in sales. Far Faso, the large percentage percentage sales growth from Year 1 to Year 2. Tatal operating expenses for both companies grew at a in operating expenses resulted in a substantial decline in net income from Year 1 to Year 2 Previous Next >