Prepare a horizontal analysis of the following comparative income statement of The

Hooser

Group.

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(Click the icon to view the comparative income statement.)Why did net income increase by a higher percentage than net sales revenue during

2020?

Show

Hooser's

horizontal analysis of net sales and expenses. (Round the percentages to the nearest hundredth percent.)

The Hooser Group
Horizontal Analysis of Comparative Income Statements
Years Ended December 31, 2020 and 2019
(amounts in thousands)			Increase / (Decrease)
	2020	2019	Amount	Percent
Sales revenues	$567,276	$492,000			%
Less: Cost of goods sold	266,805	247,500			%
Gross profit	$300,471	$244,500			%
Less: Operating expenses	148,750	140,000			%
Operating income	$151,721	$104,500			%
Less: Interest expense	9,905	4,070			%
Income before income taxes	$141,816	$100,430			%
Less: Income tax expense	21,235	18,430			%
Net income	$120,581	$82,000			%

Why did net income increase by a higher percentage than net sales revenue during

2020?

Net income increased by a much higher percentage than total revenues during

2020

because

revenues

total expenses

increased at a higher rate than did

revenues

total expenses

.