Chapter 17, Problem E17.15E

Performing horizontal analysis−income statement

Data for McCormick Designs, Inc. follow:

MCCORMICK DESIGNS, INC.
Comparative Income Statement
Years Ended December 31, 2016 and 2015

	2016	2015
Net Sales Revenue	$ 431,250	$ 373,000
Expenses:
Cost of Goods Sold	202,000	189,000
Selling and Administrative Expenses	100,050	92.550
Other Expenses	8,000	2.150
total Expenses	310,050	283.700
Net income	$ 121,200	$89,300

Requirements

1. Prepare a horizontal analysis of the comparative income statement of McComrmicDesigns, Inc. Round percentage changes to one decimal place.
2. Why did 2016 net income increase by a higher percentage than net sales revenue?