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) In a horizontal analysis, the company's income tax expense has changed exactly the same as net income (66.8%) over the four-year period. Yet, in a vertical analysis, the income tax percentage is different than the net income percentage in each period. Explain how this is possible.
(c) Identify any other key financial statement components that have changed over the four-year period for the company.
(d) Identify any additional information that might be helpful to you in your analysis of this company over the four-year period.

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SERVICE CORPORATION Horizontal Income Statement Year Ended December 31 2018 2017 2016 2015 120.0% 110.0% 114.0% 100.0% 118.696 111.496 114.396 100.096 123.3% 106.7% 113.3%100.0% Revenue Operating expense:s Income from operations Other revenues and expenses Interest expense Other revenue Income before income tax Income tax expense Net income 40.0% 60.0% 80.0% 100.0% 240.0% 140.0% 140.0% 100.0% 166.8% 130.2% 131.7% 100.0% 166.8%, 130.2% 166.8%, 130.2% 131.7% 100.0% 131.7% 100.0% SERVICE CORPORATION Vertical Income Statement Year Ended December 31 2018 2017 2016 2015 100.0% 100.0% 100.0% 100.0% 69.2% 70.9% 70.2% 70.0% 30.8% Revenue Operating expenses Income from operations Other revenues and expenses Interest expense Other revenue Income before income tax Income tax expense Net income 29.1% 29.8% 30.0% 3.3% (1.0)% 28.5% 5.7% 22.8% 5.4% (0.6% 24.3% 4.9% 19.4% 7.0% (0.9)% 23.7% 4.8% 18.9% 10.0% (0.5)% 20.5% 4.1% 16.4%