Here are the comparative income statements of Eudaley Corporation.

Instructions
(a) Prepare a horizontal analysis of the income statement data for Eudaley Corporation, using 2013 as a base. (Show the amounts of increase or decrease.)
(b) Prepare a vertical analysis of the income statement data for Eudaley Corporation for bothyears.

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EUDALEY CORPORATION Comparative Income Statements For the Years Ended December 31 Net sales Cost of goods sold Gross profit Operating expenses Net income 2014 $598,000 477,000 121,000 80,000 S 41,000 2013 $500,000 420,000 80,000 44,000 36,000