Prepare a horizontal analysis of the following comparative income statement of Mariner Designs.

Why did net income increase by a higher percentage than net sales revenue during2014?

Transcribed Image Text:

Mariner Designs Income Statement For the Years Ended December 31, 2014 and 2013 (amounts in thousandy) 2014 2013 567,276 266,805 300471 5 148,750 151,721 9,905 141816 S 21,235 120.581 6 Sales revenues 7 Less: Cost of goods sold 492,000 247,500 8 Gross profit 9 Less: Operating expenses 10 Operating income 11 Less: Interest expense 12 Income before income taxes 13 Less: income tax expense 14 Net income 15 244,5 140,000 104,500 4,070 100,430 18,430 82,000