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According to the producer price Index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 3.8 percent between January and December 2018 Required: 1. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages for the income statement of Computer Tycoon Incorporated for the year ended December 31, 2018 2-a. Conduct a vertical analysis by expressing each line as a percentage of total revenues. 2.b. Excluding income tax, Interest, and operating expenses, did Computer Tycoon earn more gross profit per dollar of sales in 2018 compared to 2017? COMPUTER TYCOON, INCORPORATED Income Statements For the Year Ended December 31 2018 2017 Change in Dollars Percentage $ % % % Sales Revenue Cost of Goods Sold Gross Profit Selling, General, and Administrative Expenses Interest Expense Income before Income Tax Expense Income Tax Expense Net Income 118,000 $ 147,000 69,000 78,700 49,000 68,300 37,800 40,600 680 565 10,520 27,135 2,500 6,800 8,020 $ 20,335 % % $ % % $ % % COMPUTER TYCOON, INCORPORATED Income Statements For the Year Ended December 31 2018 Sales Revenue 118,000 Cost of Goods Sold 69,000 Gross Profit 49,000 Selling, General, and Administrative Expenses 37,800 Interest Expense 680 Income before Income Tax Expense 10,520 Income Tax Expense 2,500 Net Income 8,020 % % % % 2017 147,000 78,700 68,300 40,600 565 27,135 6,800 20,335 % % % % % % % % S %