Problem B Deere & Company manufactures, distributes, and finances a full range of agricultural equipment; a broad range of industrial equipment for construction, forestry, and public works; and a variety of lawn and grounds care equipment. The company also provides credit, health care, and insurance products for businesses and the general public. Consider the following information from the Deere & Company Annual Report:

(in millions)	Year 1	Year 2	Year 3	Year 4
Sales	$12,791	$13,822	$11,751	$13,137
Cost of goods sold	8,481	9,234	8,178	8,936
Gross margin	4,310	4,588	3,573	4,201
Operating expenses	2,694	2,841	3,021	3,236
Net operating income	$ 1,616	$ 1,747	$ 552	$ 965

A) Prepare a statement showing the trend percentages for each item using Year 1 as the base year.

B) Prepare a horizontal analysis including the dollar and percent change for Year 4.

C) Prepare a vertical analysis showing the common size percents for years 3 and 4.

D) Comment on your analysis.