Consolidated income statement s for Peach Computer appear below: Required: 1. Prepare common size income statements for horizontal analysis. 2. Explain why net income decreased

Consolidated income statements for Peach Computer appear below:

Consolidated income statements for Peach Computer appear below: " class="fr-fic fr-dii">

Required:
1. Prepare common size income statements for horizontal analysis.
2. Explain why net income decreased in 2008 and increased in2009.

PEACH COMPUTER, INC. Consolidated Statements of Income (In thousands except per share amounts) Three fiscal years ended 2009 2008 2007 December 31 Sales Costs and expenses: $9,188,748 $7,976,954 $7,086,542 Cost of goods sold Research and development Selling, general, and administrative Restructuring costs and other $6,844,915 $5,248,834 $3,991337 602,135 1,687,262 564,303 1,384,111 (126,855) 666,474 664,564 1,632,362 320,856 $7,866,616 $6.280.734 $522,274 110,338 805,808 29,321 4.634 Operating income Interest and other income, net Income before income taxes Provision for income taxes Net income Earnings per common and common 49,634 $500,286 139,659 855442 325,069 $ 310,178 86,589 530,373 988 190,108 53,070 $2.61 $4.33 equivalent share shares used in the calculations of earnings per share Common and common equivalent 118,735 119,125 122,490