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

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Prepare a horizontal analysis of the following comparative income statement of The Dreams Group. View the comparative income statement. Why did net income increase by a higher percentage than net sales revenue during 2023? Show Dreams's horizontal analysis of net sales and expenses. (Round the percentages to the nearest hundredth percent.) The Dreams Group Horizontal Analysis of Comparative Income Statements Years Ended December 31, 2023 and 2022 (amounts in thousands) Increase/(Decrease) 2023 2022 Amount Percent Sales revenues $ 466,216 $ 404,000 % 221,810 205,000 Less. Cost of goods sold Gross profit $ 244,406 $ 199,000 107,712 102,000 Less: Operating expenses Operating income $ 136,694 $ 97,000 11,500 8,000 Less: Interest expense Income before income taxes $ 125,194 $ 89,000 18,904 14,000 % Less: Income tax expense $ 106,290 $ 75,000 % Net income The Dreams Group Income Statement For the Years Ended December 31, 2023 and 2022 (amounts in thousands) 2023 2022 Sales revenues $ 466,216 $ 404.000 Less: Cost of goods sold 221.810 205.000 Gross profit 69 244,406 $ 199.000 Less: Operating expenses 107.712 102.000 Operating income Less: Interest expense Income before income taxes Less: Income tax expense Net income S 69 SA 136.694 $ 97.000 11.500 8,000 125,194 $ 89,000 18.904 14,000 106,290 $ 75,000 Prepare a horizontal analysis of the following comparative income statement of The Dreams Group. View the comparative income statement. Why did net income increase by a higher percentage than net sales revenue during 2023? Show Dreams's horizontal analysis of net sales and expenses. (Round the percentages to the nearest hundredth percent.) The Dreams Group Horizontal Analysis of Comparative Income Statements Years Ended December 31, 2023 and 2022 (amounts in thousands) Increase/(Decrease) 2023 2022 Amount Percent Sales revenues $ 466,216 $ 404,000 % 221,810 205,000 Less. Cost of goods sold Gross profit $ 244,406 $ 199,000 107,712 102,000 Less: Operating expenses Operating income $ 136,694 $ 97,000 11,500 8,000 Less: Interest expense Income before income taxes $ 125,194 $ 89,000 18,904 14,000 % Less: Income tax expense $ 106,290 $ 75,000 % Net income The Dreams Group Income Statement For the Years Ended December 31, 2023 and 2022 (amounts in thousands) 2023 2022 Sales revenues $ 466,216 $ 404.000 Less: Cost of goods sold 221.810 205.000 Gross profit 69 244,406 $ 199.000 Less: Operating expenses 107.712 102.000 Operating income Less: Interest expense Income before income taxes Less: Income tax expense Net income S 69 SA 136.694 $ 97.000 11.500 8,000 125,194 $ 89,000 18.904 14,000 106,290 $ 75,000