The income statement for Game-On Sports for the years ending December 31, 2013 and 2012 is provided below.

Required:
1. Complete the "Amount" and "%" columns to be used in a horizontal analysis of Game-On Sports' income statement.
2. Discuss the major fluctuations in income statement items during the year.

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GAME-ON SPORTS Income Statement For the years ended December 31 Increase (Decrease) 2013 2012 Amount $5,850,000 $6,050,000 2,750,000 2,870,000 3,100,000 3,180,000 1,460,000 1,350,000 1,640,000 1,830,000 65,000 1,690,000 1,895,000 425,000 $1,320,000 $1,470,000 Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Other income (expense) 50,000 Income before tax Income tax expense Net income 370,000