The following comparative statement of income for Lemongrass Industries Ltd. was reported for the years ended November 30, 2021 and 2022. Lemongrass Industries Ltd. Statement of Income Years Ended November 30, 2022 2021 Sales $250,170 $215,800 Cost of sales 119,840 86,325 Gross profit 130,330 129,475 Operating expenses Salaries expense 38,500 35,500 Depreciation expense 7,800 6,500 Utilities expense 4,250 3,860 Insurance expense 4,125 4,025 Advertising expense 1,245 45,125 Total operating expenses 55,920 95,010 Income from operations 74,410 34,465 Other income and expenses Interest expense (4,570 ) (3,250 ) Other income 500 120 Income before income tax 70,340 31,335 Income tax expense 15,050 5,150 Net income $55,290 $26,185 Prepare a horizontal and vertical analysis on Lemongrass Industries Ltd's statement of income. (Round percentage answers to 1 decimal place, e.g. 52.7. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) HORIZONTALANALYSIS Lemongrass Industries Ltd. Statement of Income Years Ended November 30, 2022 2021 $ Change % Change Sales $250,170 $215,800 $ Cost of sales 119,840 86,325 Gross profit 130,330 129,475 Operating expenses Salaries 38,500 35.500 expense Depreciation 7,800 6,500 expense Utilities 4,250 3,860 expense Insurance 4,125 4,025 % expense Advertising 1,245 45,125 expense Total operating 55,920 95,010 expenses Income from 74,410 34,465 operations Other income and expenses Interest (4,570 ) (3,250 ) expense Other income 500 120 Income before 70,340 31,335 income tax Income tax 15,050 5,150 expense Net income $55.290 $26,185 24 VERTICALANALYSIS Lemongrass Industries Ltd. Income Statement Years Ended November 30, 2022 % of Net Sales 2021 % of Net Sales Sales $250.170 $215.800 Cost of sales 119,840 86,325 Gross profit 130,330 129,475 Operating expenses Salaries 38,500 35,500 expense Depreciation 7,800 6,500 % expense Utilities 4,250 3,860 expense Insurance 4.125 4,025 expense Advertising 1,245 45,125 expense Total operating 55.920 95,010 expenses Income from 74,410 % 34,465 operations Other income and expenses Interest (4,570 ) (3,250 ) expense Other 500 120 % income Income before 70,340 31,335 income tax Income tax 15,050 5,150 expense Net income $55.290 $26,185