Question 10.1 1. Prepare a horizontal analysis of the following comparative income statement for Westwind Corporation. Round percentage changes to the nearest one-tenth percent. Westwind Corporation Comparative Income Statement For the Years Ended December 31, 2016 and 2015 2016 2015 Total revenue $1,400,000 $1,250,000 Expenses: Cost of goods sold 925,000 $830,000 Operating expenses 313,000 280,000 Interest expense 14,000 12,000 Income tax expense 48,300 38,000 Total expenses $1,300,300 $1,160,000 Net Income $99,700 $90,000

1. Compute trend percentages for Flash Corporation total revenue and net income for the following five-year period, using year 0 as the base year. Round to the nearest full percent.

(in thousands)	Year 4	Year 3	Year 2	Year 1	Year 0
Total revenue	1629	1316	$1214	$1101	$1121
Net income	129	109	97	84	87

Question 10.3

1. Use the following data to prepare a common-size comparative income statement for Old Mill Corporation on December 31, 2016. Round percentages to one-tenth percent.

	2016	2015
Net sales	$1,510,000	$1,350,000
Expenses:
Cost of goods sold	$980,000	$860,000
Selling and general expenses	290,000	230,000
Interest expense	59,0000	59,000
Income tax expense	71,000	53,000
Total expenses	$1,400,000	$1,202,000
Net income	$110,000	$148,000