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IV. Horizontal Analysis. Consider the following 2018 and 2019 income statements of Legaspi Company, then express them in common size percentages. Round percentages to one decimal point. Comment briefly on the changes between two years. LEGASPI COMPANY Income Statements For the Years Ended December 31, 2018 and 2019 2019 600,000 420,000 180,000 2018 500,000 331,000 169,000 Sales Cost of goods sold Gross Margin Operating expenses Selling expenses Administrative expenses Total operating expenses Net operating income Interest expense Net income before taxes Income taxes (30% Net income 87,000 46,800 133,00 46,200 1.200 45,000 13,500 31,500 72.500 51.00 123,500 45.500 1.500 44.000 13.200 30.800