The EastTN Company sells computer parts through a retail store that it operates. The firm's comparative income statement and balance sheet for the years 2016 and 2015 follow:

INSTRUCTIONS
1. Prepare both a horizontal and a vertical analysis of the statements. Carry all calculations to two decimal places, and then round to one decimal place. (Leave all vertical analysis percentages unadjusted in this problem.)
2. Make written comments about any of the results that seem worthy of investigation. Analyze: Based on your analysis, which expense category experienced the greatest percentage change?

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The EastTN Co Income Statement For Years Ended December 31,2016 and 2015 Amounts Revenue 905 o olo 65o0o Less Sales Returns and Allowances Net Sales Cost of Goods Sold Net Purchases looo 8400o Merchandise Available 000 34 200 600o December 31 of Goods Sold s Profit on Sales 8400o 258 0oo 586o 49o Sales Salories 8700o 8 70o Other Sellin Total General and Administrative Depreciation Expense Other General and Administrative 2 5 0 2 50 9 450 607 00 Totol General and Administrative Expenses 3 6250 23 9450 Net Income Income Tax Net Income a Income Taxes 0440o 5855o 77565 8 0 9 85 Income Taxes 2113 o80 The EastTN Co Comparative Balance Sheet ber 31,2016 and 2015 Amounts 2016 2015 Current Assets 1 11 022 9 500o 860o 462 75 8750o 8 40oo 500 o Accounts Totol Current Assets Plant, and E and E ess Accumulated Net Book Value-Burlding and E 2 475 o Total Property, Plant, and Equipment 24 500 32750 4272 22 35 60 25 Liabilities and Current Liabilities 2700o 1000 1 14 2 5 70loo Sales Tax Payable Payroll Taxes Payable Income Taxes 1 02 5 Total Current Liabilities Term Liabilities 90olo lotal Long- Total Liabilitbies erm Liabilities 11 025 Stockholders Equ Common Stock ($1 par, 10,000 shares authorized; 10,000 shares issued and outstanding) Paid-in Capital Common Stock Retained Eamings 00o 00o 2500o 2 45 oolo 35 60 25 338 08 0 358 08 0 4272 22 l Liabilities and Stockholders Equity