The comparative condensed income statements of Emley Corporation are shown 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

Prepare a horizontal analysis of the income statement data for Emley Corporation using 2016 as a base. (Show the amounts of increase or decrease.)

Prepare a vertical analysis of the income statement data for Emley Corporation in columnar form for both years.

Compute liquidity ratios and compare results.