The comparative condensed income statement of Emley Corporation are shows below.
Comparative Condensed Income Statements for the years Ended December 31
Net Sales $660,000 $600,000
Cost of goods sold 483,000 420,000
Gross profit 177,000 180,000
Operating expenses 125,000 120,000
Net Income $ 52,000 $60,000
(a) Prepar a horizontal analysis of the income statement data for Emley Corporation using 2016 as a base. (show the amount of increase or decrease).
(b) Prepar a vertical analysis of the income statement data for Emley Corporation in columnar form for both years.