The Income Statement for XYZ Company for 2016 and 2017 is as follows:

2017 Sales $4,000,000

Cost of Goods Sold 2,500,000 Gross Profit 1,500,000 Selling Expense 600,000 Administrative Expense 200,000 Total Operating Expense 800,000 Income from Operations 700,000 Income Tax Expense 50,000 Net Income 650,000

2016 $3,500,000 2,400,000 1,100,000 700,000 150,000 850,000 250,000 20,000 230,000

Instructions: Using the above comparative horizontal analysis for ABC Company.