Income statement data for Bezos Company for the years ended December 31, 2014 and 2013 are as follows:

a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for 2014 when compared with 2013. Round to one decimal place.
b. What conclusions can be drawn from the horizontalanalysis?

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2014 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax Income tax expense Net income $ 840,000 724,500 115,500 S 52,500 41,400 $ 93,900 5 21,600 10,800 S10,800 2013 $600,000 525,000 75,000 37,500 30,000 67,500 7,500 5 5 5 S4,800