Problems (90 Points You must show your calculations to receive full credit) 6. The following items were taken from the financial statements of Ritz Inc., over a 4-year period: Item Year 4 Year 3 Year 2 Year 1 Net Sales $800,000 $700,000 $550,000 $500,000 Cost of Goods Sold 560,000 500,000 420,000 400,000 Gross Margin $240,000 $200,000 $130,000 $100,000 Required: Using horizontal analysis and Year 1 as the base year, compute the trend percentages for net sales, cost of goods sold, and gross profit. Explain whether the trends are favorable or unfavorable for each item