Here are the comparative income statements of Blevins Corporation.

Instructions(a) Prepare a horizontal analysis of the income statement data for Blevins Corporation, using 2011 as a base. (Show the amounts of increase or decrease.)(b) Prepare a vertical analysis of the income statement data for Blevins Corporation for both years.

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BLEVINS CORPORATION Comparative Income Statements For the Years Ended December 31 2012 2011 Net sales $598,000 $500,000 420,000 Cost of goods sold 477,000 $ 80,000 Gross profit Operating expenses $121,000 80,000 44,000 $ 41,000 $ 36,000 Net income