Data for McCormick Designs, Inc. follow:

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

Transcribed Image Text:

MCCORMICK DESIGNS, INC Comparative Income Statement Years Ended December 31, 2016 and 2015 2016 2015 Net Sales Revenue 431,250 S373,000 Expenses Cost of Goods Sold Selling and Administrative Expenses Other Expenses Total Expenses 189,000 92,550 2,150 283,700 $121,200 89300 202,000 100,050 8,000 310,050 Net Income