The McCormick Group Income Statement For the Years Ended December 31, 2017 and 2016 (amounts in thousands) 2016 2017 Sales revenues Less: Cost of goods sold Gross profit Less Operating expenses Operating income Less: Interest expense Income before income taxes Less: Income tax expense Net income S 494,208 S429,000 160,000 $ 321,568 S 269,000 135,000 $ 178,198 $ 134,000 6,000 S 170,698 $ 128,000 24,000 $136,708 S 104,000 172,640 143,370 7,500 33,990 Prepare a horizontal analysis of the tollowing comparative income statement of The McCormick Group. (Click the icon to view the comparative income statement) Why did net income increase by a higher percentage than net sales revenue during 2017? Honzontal Analysis or Comparative Income Statements Years Ended December 31, 2017 and 2016 Increase / (Decrease) Amount Percent (amounts in thousands) 2017 2016 s 494,208 429,000 172,640 160,000 321,568 S 143370 135000 Less: Cost of goods sold Gross profit Less. Operating expenses --]% 269,000 135,000 S |[ ]% $ 178198 $ 134000| 7,500 6,000 Less Interest expense s 170,698 s 128,000 33,990 24,000 Less Income tax expense $ 136,708 S 104,000 Why did net income increase by a higher percentage than net sales revenue during 2017? increased at a higher rate than did Net income increased by a much higher percentage than total revenues during 2017 because