Smith Corporation provides the following comparative income statement:

Smith Corporation Comparative
Income Statement
For the Years Ended December 31, 20X3 and 20X2
	20X3	20X2
Sales	$570,000	$680,000
Cost of goods sold	200,000	170,000
Gross profit	$370,000	$510,000
Operating expenses	100,000	210,000
EBIT	$270,000	$300,000

(a) Calculate the percentage change using horizontal analysis and (b) evaluate the results.