The comparative condensed income statement of Emley Corporation are shows below.

Emley Corporation

Comparative Condensed Income Statements for the years Ended December 31

2017 2016

Net Sales $660,000 $600,000

Cost of goods sold 483,000 420,000

Gross profit 177,000 180,000

Operating expenses 125,000 120,000

Net Income $ 52,000 $60,000

Instructions

(a) Prepar a horizontal analysis of the income statement data for Emley Corporation using 2016 as a base. (show the amount of increase or decrease).

(b) Prepar a vertical analysis of the income statement data for Emley Corporation in columnar form for both years.