Data for Mulberry Designs, Inc. follow:

Requirements
1. Prepare a horizontal analysis of the comparative income statement of Mulberry Designs, Inc. Round percentage changes to one decimal place.
2. Why did 2018 net income increase by a higher percentage than net sales revenue?

Transcribed Image Text:

MULBERRY DESIGNS, INC. Comparative Income Statement Years Ended December 31, 2018 and 2017 2018 2017 $ 431,000 $ 372,350 Net Sales Revenue Expenses: Cost of Goods Sold 203,850 186,000 Selling and Administrative Expenses 99,000 93,250 Other Expenses 9,000 4,650 Total Expenses 311,850 283,900 $ 119,150 $ 88,450 Net Income