Q2-i Q2-iii For the Income Statement prepare a HORIZONTAL Analysis (Do not perform this for the Cells colored black). Use the cells in the table below to perform the anlaytic.)" Analyze the change in the accounts indicated below in yellow. Think about what could be causing this change? What concerns does this raise for you? ANSWER Amanusis ir tie geleesbaon. Sa Acerves ansvamo watashensible Q2-iv What phase of the audit would this analytic (Horizontal Analysis) most likely be performed? (Planning, substantive, completion-Pick 1) Briefly Explan why (1 ANSWER (EX: Substantie-becaused nedbe uste zuersamaan 354'05 317e is teyyaa' and we cewy rakabide me INCOHE STATEMENT 7ro Years Ended December SL 20XX (CY) and 20XX-IPYI it storsands; 20XX (CY 2.T. O $Change % Change Technology Income (Net of Sales Returns and Discounts) Analysis of Change Revenue went up approx. 20%-we would probably want to look at the economy, the historical increase in sales, competitor growth to determine if this increase is reasonable.) HINT: Compare this to COGS and Inventory changes. $103,175 $85,540 $17,635 20.6% Dividend and Interst Income $71 $171 Other Revenue $4 $2 REVENUE $103,250 $85,713 EXPEASES Cost of Good Sold 51,833 42,770 (Hint: compare the change in COGS to the change in revenue to see if they are increasing at approximately the same %) Fees to Parent for rent, atafl, etc. 1,200 1100 Legal, professional, audit, and regulatory fees 207 (Hint: Review the Notes to the FS to see if there was anything that might cause an increase or decrease in costs for lawyers or government fines) Why Might these costs have gone up? Salary Expense 1,014 830 Interest Expense 16 0 Depreciation and amortization 70 87 (Hint: compare the change in Depreciation Expense to the change in PP&E to see if they are changing at approximately the same X) (Use in Information in the Q1tab but you probably need to calculate the horizontal change for PP&E) 60 Other expenses TOTAL EXPEHSES Het incon 65.6 5.106 144.852 248.8241 210.861