Comparative income statements for Chicago Company are provided below:Chicago CompanyComparative Income StatementYears Ended December 31?Year 2Year 1Sales$ 288,000$ 302,190Less cost of goods sold_____101,350_____115,400Gross margin186,650 186,790Less operating expenses 89,970______99,770Income before taxes96,68087,020Income taxes______38,672______34,808Net income $ 58,008$ 52,212Required:Perform a horizontal analysis of Chicago Company's income statement by computing horizontal percentages for each item. Round your answer to one decimal place (i.e. 22.5%).
What will be an ideal response?
| Chicago Company | |||
| Comparative Income Statement | |||
| Years Ended December 31 | |||
| ? | Year 2 | Year 1 | Percentage Change |
| Sales | $ 288,000 | $ 302,190 | -4.7% |
| Less cost of goods sold | _____101,350 | _____115,400 | -12.2% |
| Gross margin | 186,650 | 186,790 | -01% |
| Less operating expenses | 89,970 | ______99,770 | -9.8% |
| Income before taxes | 96,680 | 87,020 | 11.1% |
| Income taxes | ______38,672 | ______34,808 | 11.1% |
| Net income | $ 58,008 | $ 52,212 | 11.1% |
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