The Stair Company sells computer parts through a retail store that it operates. The firms comparative income statement and balance sheet for the years 2019 and 2018 are shown below.

Required:

1. 1-a. Complete both a horizontal and a vertical analysis of comparative income statement for the years 2019 and 2018.

Complete both a horizontal and a vertical analysis of comparative income statement for the years 2019 and 2018. (Round your percentage answers to 1 decimal place. i.e., 0.123 should be entered as 12.3.)

The Stair Company
Comparative Income Statement
For Years Ended December 31, 2019 and 2018
	Amounts		Percent of net sales				Increase or (Decrease)
Account name	2019	2018	2019		2018		Amount	Percent
Revenue
Sales	1,025,000	818,400		%		%			%
Less Sales Returns and Allowances	25,000	18,400		%		%			%
Net Sales	1,000,000	800,000	0.0	%	0.0	%	0		%
Cost of Goods Sold
Merchandise Inventory, January 1	90,000	88,800		%		%			%
Net Purchases	369,500	297,600		%		%			%
Total Merchandise Available for Sale	459,500	386,400	0.0	%	0.0	%	$0		%
Less Merchandise Inventory, December 31	96,000	90,000		%		%			%
Cost of Goods Sold	363,500	296,400		%		%			%
Gross Profit on Sales	636,500	503,600	0.0	%	0.0	%	0		%
Operating Expenses
Selling Expenses
Sales Salaries Expense	89,000	80,000		%		%			%
Payroll Tax ExpenseSelling	9,000	8,800		%		%			%
Other Selling Expenses	31,600	20,000		%		%			%
Total Selling Expenses	129,600	108,800	0.0	%	0.0	%	$0		%
General and Administrative Expenses
Officers' Salaries Expense	156,000	121,600		%		%			%
Payroll Tax ExpenseAdministrative	17,000	11,200		%		%			%
Depreciation Expense	8,000	8,000		%		%			%
Other General and Administrative Expenses	16,000	11,200		%		%			%
Total General and Administrative Expenses	197,000	152,000	0.0	%	0.0	%	$0		%
Total Operating Expenses	326,600	260,800		%		%			%
Net Income Before Income Taxes	309,900	242,800		%		%			%
Income Tax Expense	92,970	72,840		%		%			%
Net Income After Income Taxes	216,930	169,960	0.0	%	0.0	%	$0		%