QUESTION 3 The following items were taken from the financial statements of Ritz, Inc., over a four-year period: Item 2020 2019 2018 2017 Net Sales 750,000 650,000 600,000 500,000 Cost of Goods Sold 540.000 460.000 420.000 400.000 Gross Profit 210.000 190.000 180,000 100,000 Required: 1. Using horizontal analysis and 2017 as the base year, show the percentage change for net sales, cost of (9 marks) 2. For each item (net sales, cost of goods sold, and gross profit) explain whether the percentage changes a Arial 43 (12pt) 4 T 111 Ritz, Inc., over a four-year period: 2017 500,000 400.000 100,000 - the percentage change for net sales, cost of goods sold, and gross profit for the years 2020, 2019 and 2018. t) explain whether the percentage changes are favorable or unfavorable. (3 marks) 25