Year 2 Year 1 Sales $121,000 $92,000 Cost of goods 75,000 51,000 sold Selling 12,000 11,000 expenses Administrative 12,000 14,000 expenses Interest 3,000 5,000 expense Total 102,000 81,000 expenses Income before taxes 19.000 11,000 Income taxes 3,800 2,000 S Net income $ 9,000 15,200 Horizontal analysis indicates that XYZ's sales grew by 24/975