The following items were taken from the financial statements of Abu Dhabi Company, over a four-year period: Item Net Sales 2011 $1,800,000 $1,300,000 $1,100,000 $1,000,000 960.000 $340,000 2012 2010 2009 840,000 $260,000 Cost of Goods Sold Gross Profit 1.280.000 $520,000 800.000 $200.000 Instructions: Using horizontal analysis and 2009 as the base year to answer the following questions: 1. Compute the trend percentages for net sales, cost of goods sold, and gross profit. Explain whether the trends are favorable or unfavorable for each item 2. Solution question 1: 2010 2009 2012 2011 Item Net Sales Cost of Goods Sold Gross Profit