The comparative financial statements prepared at December 31, Year 2, for Goldfish Company showe Statement of Earnings Sales revenue Cost of sales Gross margin Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of Financial Position Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Current liabilities (no interest) Non-current liabilities (10% interest) Common shares (6,000 shares) Retained earningst Year 2 Statement of earnings: Sales revenue Cost of sales Gross margin Operating expenses and interest expense $265,320* $225,000 207,760 175,000 57,560 42,720 50,000 38,100 14,840 11,900 3,860 2,900 $ 10,980 $ 9,000 Year 1 $ $4,730 18,290 46,780 44,340 $114,140 $ 15,090 $ 18,200 41,970 38,000 30,000 30,000 27,080 23,800 $114,140 $110,000 $ 9,500 22,000 41,000 37,500 $110,000 *One-third was credit sales. +During Year 2, cash dividends amounting to $7,700 were declared and paid. Required: 1. Using the concept of horizontal analyis, complete the following columns for each item in the prec statements (Negative answers should be indicated by a minus sign. Round percentage answers t should be entered as 12.43).): Increase (Decrease) Year 2 over Year 1 Amount 40,320✔ 32,760✔ 7,560 4,620 Percentage 17.92 18.72 15.12 12.08 x