Required information (The following information applies to the questions displayed below.) NOTE: Throughout this lab, every time a screenshot is requested, use your computer's screenshot tool, and paste each screenshot to the same Word document. Label each screenshot in accordance to what is noted in the lab. This document with all of the screenshots included should be uploaded through Connect as a Word or PDF document when you have reached the final step of the lab. In this lab, you will: Required: 1. Perform horizontal analysis on United Continental's income statement. Ask the Question: How can a horizontal analysis of the United Continental's income statement highlight changes from one year to the next? Master the Data: Apply the same steps as Lab 6-3 to the Lab 6-3 Alt Data.xlsx dataset to perform horizontal analysis for United Continental. Software needed Excel Screen capture tool (Windows: Snipping Tool; Mac: Cmd+Shift+4) Data: Excel File Lab 6-3 Alt Data.xlsx. Perform the Analysis: Refer to Lab 6-3 Alternate in the text for instructions and Lab 6-3 steps for each the of lab parts. Share the Story: We have now completed the horizontal analysis and can share it with decision makers to learn what items increased, which items decreased, and by what percentage in hopes of gaining more knowledge of what happened over the past two years. B D E Period End 12/31/17 10-K 12/31/18 10-K $32,404,000,000 $1,035,000,000 $4,297,000,000 $37,736,000,000 $37,706,000,000 $1,237,000,000 $2,360,000,000 $41,303,000,000 1 Exported from Calcbench: 2/19/2019 8:25:45 AM 2 United Continental Holdings, Inc. (Ual) 3 Statements of Consolidated Operations 4 5 6 Operating revenue: 7 Passenger 8 Cargo 9 Other operating revenue 10 Total operating revenue 11 Operating expense: 12 Salaries and related costs 13 Aircraft fuel 14 Landing fees and other rent 15 Regional capacity purchase 16 Depreciation and amortization 17 Aircraft maintenance materials and outside repairs 18 Distribution expenses 19 Aircraft rent 20 Special charges (Note 14) 21 Other operating expenses 22 Total operating expenses 23 Operating income 24 Nonoperating income (expense): 25 Interest expense 26 Interest capitalized 27 Interest income 28 Miscellaneous, net (Note 14) 29 Total nonoperating expense, net 30 Income before income taxes 31 Income tax expense (benefit) (Note 14) 32 Net income 33 $11,045,000,000 $6,913,000,000 $2,240,000,000 $2,232,000,000 $2,149,000,000 $1,856,000,000 $1,349,000,000 $621,000,000 $176,000,000 $5,657,000,000 $34,238,000,000 $3,498,000,000 $11,458,000,000 $9,307,000,000 $2,359,000,000 $2,601,000,000 $2,240,000,000 $1,767,000,000 $1,558,000,000 $433,000,000 $487,000,000 $5,801,000,000 $38,011,000,000 $3,292,000,000 ($643,000,000) $84,000,000 $57,000,000 $3,000,000 ($ 499,000,000) $2,999,000,000 $868,000,000 $2,131,000,000 ($729,000,000) $70,000,000 $101,000,000 ($ 76,000,000) ($634,000,000) $2,658,000,000 $529,000,000 $2,129,000,000 Required: 1. What is the percentage decrease in net income? 0-39.06% O-5.89% 27.05% O-0.09% 2. Based on the results of the horizontal analysis, which line item on the income statement increased by the highest percentage during the year? O Cargo O Aircraft fuel O Special charges O Interest income 3. Based on the results of the horizontal analysis, which line item on the income statement decreased by the highest percentage during the year? O Miscellaneous, net O Income tax expense O Aircraft rent O Other operating revenue 4. Based on the results of the horizontal analysis, which line item on the income statement decreased by the most dollars during the year? O Other operating revenue O Operating revenue O Aircraft rent O Income tax expense 5. Based on the results of the horizontal analysis, which line item on the income statement increased by the most dollars during the year? Cargo Operating income Aircraft fuel O Passenger