Perform a Trend (Horizontal) Analysis of the Income Statement in the yellow-shaded cells.

MACY'S INC. 10-K Feb. 1, 2020 Horizontal Analysis Horizontal Analysis Consolidated Statements of Income $ Chg %Chg $ Chg %Chg ($411)! (2%) 2018 $24,971 768 (15,215) 10,524 (9,039) 389 (136) 1,738 2017 $24,939 702 (15,181) 10,460 (8,954) 544 (186) 1,864 (millions, except per share data) Net sales Credit card revenues, net Cost of sales Gross margin Selling, general and administrative expenses Gains on sale of real estate Restructuring, impairment, store closing and other costs Operating income Benefit plan income, net Settlement charges Interest expense Gains (losses) on early retirement of debt Interest income Income before income taxes Federal, state and local income tax benefit (expense) Net income Net loss attributable to noncontrolling interest Net income attributable to Macy's, Inc. shareholders 2019 $24,560 771 (15,171) 10,160 (8,998) 162 (354) 970 31 (58) (205) (30) 20 728 (164) 564 0 $564 39 57 (105) (321) 10 (88) (261) (33) 25 1,420 (322) 1,098 11 1,516 39 1,555 $1,108 $1,566 $1.82 $3.60 $5.13 Basic earnings per share attributable to Macy's, Inc. shareholders Diluted earnings per share attributable to Macy's, Inc. shareholders $1.81 $3.56 $5.10 9. Describe the trend in Macy's revenues. Be specific (e.g., slight/steody/drastic increase or decrease coch year, or fluctuating with an initial modest/significant increase or decrease, followed by a modest/significant increase or decrease, etc.) to precisely describe the company's situation 22 10. Describe the trend in Macy's selling general & administrative expenses (operating expenses)-again, be specific. 24 26 11. Describe the trend in Macy's net income-again, be specific 12. Examine the percentage changes in these items from 2018 to 2019 for Macy's. Summarize what is causing the changes in net income from fiscal year 2018 to 2019 based on the percentages computed above. 28 29 30 13. Do you expect the trend to continue