Requirements

1.

Prepare a horizontal analysis of the comparative income statement of Mariner Designs, Inc. Round percentage changes to one decimal place.

2.

Why did 2012 net income increase by a higher percentage than net sales revenue? Mariner Designs, Inc. Comparative Income Statement Years Ended December 31, 2012 and 2011 2012 2011 Net sales revenue . $431,000 $372,350 Expenses: Cost of goods sold . $200,000 $187,550 Selling and general expenses $99,000 $91,050 Other expense $8,350 $6,850 Total expenses . $307,350 $285,450 Net income . $123,650 $86,900