Sales Cost of goods sold Gross margin Selling and $ 90,000 75,000 23,000 52,000 29,000 26,000 26,000 10,2007,800 $ 23,800 $18,200 27,000 63,000 nistrative Net income before taxes Income taxes (30%) Net income 34,000 33 Knowledge Check O1 From the horizontal analysis prepared using the income statements of Wilson Corporation, we determine that cost of goods sold in 2016 O is 30.7% of total sales increased by 17.4% is 69.3% of total sales increased by 21.5%