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 2020? Show Spellbound's horizontal analysis of net sales and expenses. (Round the percentages to the nearest hundredth percent.) The Spellbound 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 $ 426,411 $ 371,600 % Less: Cost of goods sold 180,761 166,600 % Gross profit $ 245,650 $ 205,000 % Less: Operating expenses 100.130 95,000 % Operating income $ 145,520 $ 110,000 % Less: Interest expense 10,150 7,000 % Income before income taxes 135,370 $ 103,000 % 38,185 28,000 Less: Income tax expense % $ 97,185 $ 75,000 Net Income % $ Data Table A B 1 The Spellbound Group 2 Income Statement 3 For the Years Ended December 31, 2020 and 2019 (amounts in thousands) 4 5 2019 6 Sales revenues $ 371,600 2020 426,411 $ 180,761 245,650 $ 166,600 $ 205,000 100,130 95,000 7 Less: Cost of goods sold 8 Gross profit 9 Less: Operating expenses 10 Operating income 11 Less: Interest expense 12 Income before income taxes $ 145,520 $ 110,000 7,000 10,150 $ 135,370 $ 103,000 13 Less: Income tax expense 38,185 28,000 14 Net income $ 97,185 $ 75,000 Print Done