Prepare horizontal analysis of the change in key accounts; at least 3 ratios

 Prepare vertical analysis of key expense accounts (amount as a percent of sales); at least 2 ratios for each year

Falls Jewelry Co.
Income Statement
For the year ended December 31
(000s)				2022		2023
Sales - All on Credit		$ 500,000			$ 565,000
Cost of Goods Sold		220,000			226,000
	Gross Profit			280,000		339,000
Salaries Expense		120,000			170,000
Advertising Expense		40,000			36,000
Depreciation Expense		13,000			16,000
IT Expenses		7,000			8,000
	Total Expenses			180,000		230,000
Operating Income		100,000			109,000
Interest Expense		14,000			21,000
Income Before Taxes		86,000			88,000
Income Tax Expense		17,200			17,600
Net Income		$ 68,800			$ 70,400
Average Shares Outstanding		20,000			20,000
Number of Stores		150			190		All stores opened on 1/1/23
Stock Price		$ 70.00			$ 20.35
1.	- Calculate the following ratios:
				2022		2023
	Gross profit margin %			56.0%		60.0%
	Operating profit margin %			20.0%		19.0%
	Net Profit margin %			13.8%		12.5%
	Earnings per share			$ 3.44		$ 3.52
	2022 PE Ratio			70.0		20.35
2.