Below is the comparative income statement of Horton, Inc.

Requirements
1. Prepare a horizontal analysis of the comparative income statement of Horton, Inc. Round percentage changes to the nearest tenth of a percent.
2. Why did net income increase by a higher percent than total revenues increased during2012?

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Horton, Inc. Comparative Income Statement Years Ended December 31, 2012 and 2011 2012 S595,000 2011 Revenue Expenses: Cost of Goods Sold Selling and General Expenses Interest Expense Income Tax Expense Total Expenses Net Income S270,000 $227.000 110,000 41,000 120,000 48,000 468,000 S127,000 413,000 S 92.000