A horizontal and vertical analysis of the income statement for a service company providing consulting services is shown below.

Instructions
(a) How effectively has the company controlled its operating expenses over the four-year period?
(b) Identify any other income statement components that have significantly changed over the four-year period for the company.
(c) Identify any additional information that might be helpful to you in your analysis of this company over the four-year period.
TAKING IT FURTHER
Shopify became a public corporation in May 2015. Can a meaningful horizontal and vertical analysis be prepared for its first full year of operations as a public company, the year ended December 31, 2015? Explain.

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COMFORT CORPORATION Horizontal Income Statement Year Ended January 31 Revenue Operating expenses Profit from operations Other revenues and expenses 2017 120.0% 118.6% 123.39% 2016 110.0% 11 1.4% 106.7% 2015 11 4.0% 114.3% 113.3% 2014 100.0% 100.0% 100.0% Interest expense Other revenue Profit before income tax Income tax expense Profit 40.0% 240.0% 166.8% 166.8% 166.8% 60.0% 140.0% 130.2% 130.2% 130.2% 80.0% 200.0% 131.7% 131.7% 131.7% 100.0% 100.0% 100.0% 100.0% 100.0% COMFORT CORPORATION Vertical Income Statement Year Ended January 31 Revenue Operating expenses Profit from operations Other revenues and expenses 2017 100.0% 69.2% 30.8% 2016 100.0% 70.9% 29,1% 2015 100.0% 70.2% 29.8% 2014 100.0% 70.0% 30.0% (3.3)% 1.0% 28.5% 5.7% 22.8% (5.4)% 06% (7.0)% 0.9% 23.7% 4.8% 18.9% (10.0)% 0.5% 20.5% 4.1% 16.4% Interest expense Other revenue Profit before income tax Income tax expense Profit 24.3% 4.9% 19.4%