For 2014, Lindell Company reported its most significant decline in net income in years. At the end of the year, H. Finn, the president, is presented with the following condensed comparative income statement:

Instructions
1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 2013 as the base year. Round to one decimal place.
2. To the extent the data permit, comment on the significant relationships revealed by the horizontal analysis prepared in(1).

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Lindell Company Comparative Income Statement For the Years Ended December 31, 2014 and 2013 2014 2013 Sales . . $1,092,500 $950,000 50,000 Sales returns and allowances 57 Cost of goods sold. 625,000 500,000 Selling expenses.. .153,600 $120,000 80,000 .. . .251200 $200,000 ...$ 158,800 $200,000 10,000 . 173,800 $210,000 20,000 .150800 190,000 97,600 Total operating expenses Income from operations ther income.... Income before income tax ncome tax expense.. Net income. . . . . 15,000 23.000 2OC