The following items were taken from the financial statements of Dally Inc., over a threeyear period: Item Year 3 Year 2 Year 1 Net Sales P226,000 P212,000 P200,000 Cost of Goods Sold 150,000 140,000 136,000 Gross Profit P76,000 P72,000 P64,000 Instructions: Using horizontal analysis and Year 1 as the base year, 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.