The following items were taken from the financial statements of Ritz, Inc., over a four-year period: Bem Net Sales 2018 750,000 Cost of Goods Sold Gross Profit 540.000 $210.000 2017 650,000 460.000 190.000 2016 600,000 420,000 150,000 2015 500,000 400.000 100.000 Required: 1. Using horizontal analysis and 2015 as the base year, show the percentage change for net sales, cost of goods sold, and gross profit for the years 2018, 2017 and 2016. (9 marks) 2. For each item (net sales, cost of goods sold, and gross profit) explain whether the percentage changes are favorable or unfavorable