Prepare a horizontal analysis of the following comparative income statement of The Ruby Group.

Why did net income increase by a higher percentage than net sales revenue during 2023?

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1 2 3 The Ruby Group Income Statement For the Years Ended December 31, 2023 and 2022 4 (amounts in thousands) 5 2023 2022 6 Sales revenues $ 458,800 $ 400,000 7 Less: Cost of goods sold 209,820 195,000 8 Gross profit 248,980 $ 205,000 9 Less: Operating expenses 95,670 90,000 10 Operating income $ 153,310 $ 115,000 11 Less: Interest expense 4,250 3,125 12 Income before income taxes 149,060 $ 111,875 13 Less: Income tax expense 16,420 11,875 14 Net income 15 132,640 $ 100,000