The following is a summary of information presented on the financial statements of a company on December 31, 2025.

Account	2025	2024
Net Sales Revenue	$602,000	$500,000
Cost of Goods Sold	450,000	404,000
Gross Profit	$152,000	$98,000
Selling Expenses	55,000	52,000
Net Income Before Income Tax Expense	$97,000	$46,000
Income Tax Expense	37,000	24,000
Net Income	$60,000	$22,000

1. Prepare the horizontal analysis for net sales revenue, cost of goods sold, and gross profit (i.e. percent change and direction of the change).

2. What does your analysis tell you about the company's performance? (Hint: what is driving the change in gross profit?)