Prepare a horizontal analysis of the following comparative income statement of The Spellbound Group. (Click the icon to view the comparative income statement.) Why did net income increase by a higher percentage than net sales revenue during 2017? Show Spellbound's horizontal analysis of net sales and expenses. (Round the percentages to the nearest hundredt percent.) The Spellbound Group Horizontal Analysis of Comparative Income Statements Years Ended December 31, 2017 and 2016 (amounts in thousands) Increase / (Decrease) 2017 2016 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 9,905 Less: Interest expense 4,070 % 141,816 $ Income before income taxes % 100,430 21,235 18.430 Less: Income tax expense $ 120,581 $ 82 000 Net income % % % Enter any number in the edit fields and then continue to the next question. Next Why did net income increase by a higher percentage than net sales revenue during 2017? Net income increased by a much higher percentage than total revenues during 2017 because increased at a higher rate than did Enter any number in the edit fields and then continue to the next question. The Spellbound Group Income Statement For the Years Ended December 31, 2017 and 2016 (amounts in thousands) 2017 2016 $ Sales revenues 492,000 567 276 $ 266,805 247 500 $ 300,471 S 148,750 244,500 140,000 S Less: Cost of goods sold Gross profit Less: Operating expenses Operating income Less: Interest expense Income before income taxes Less: Income tax expense 151,721 S 9.905 104,500 4,070 S 141,816 $ 21.235 100,430 18,430 S 120,581 S 82,000 Net income Print Done