The comparative income statements of

RunningRunning

Music Co.? follow:

Prepare a horizontal analysis of the comparative income statements of

RunningRunning

Music Co. Round percentage changes to the nearest? one-tenth percent? (three decimal? places).

Running Music Co.

Horizontal Analysis of Comparative Income Statements

Years Ended December 31, 2014 and 2013

Increase (Decrease)

2014 2013 Amount Percentage

Total revenue $836,000 $938,000 %

Expenses:

Cost of goods sold 408,000 409,350

Selling and general expenses 238,000 267,000

Interest expense 9,500 14,000

Income tax expense 79,000 85,750

Total expenses 734,500 776,100

Net income $101,500 $161,900 %