• PQR Corp's income statement for the past three years is as follows:

  Item	Year 1	Year 2	Year 3
  Revenue	$500,000	$600,000	$700,000
  Cost of Goods Sold	$300,000	$350,000	$400,000
  Gross Profit	$200,000	$250,000	$300,000
  Operating Expenses	$100,000	$120,000	$140,000
  Net Income	$100,000	$130,000	$160,000

  Perform horizontal analysis on the income statement and identify any trends or changes over the three years.