The comparative condensed income statements of Hendi Corporation are shown below.

Instructions(a) Prepare a horizontal analysis of the income statement data for Hendi Corporation using 2010 as a base. (Show the amounts of increase or decrease.)(b) Prepare a vertical analysis of the income statement data for Hendi Corporation in columnar form for bothyears.

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HENDI CORPORATION Comparative Condensed Income Statements For the Years Ended December 31 2011 2010 $500,000 $600,000 Net sales Cost of goods sold 483,000 420,000 Gross profit Operating expenses 117,000 57,200 80,000 44,000 $ 59,800 $ 36,000 Net income