Pettit Corporation reported the following operating results for two consecutive years.

Required
a. Compute the percentage changes in Pettit Corporation's income statement components between the two years.
b. Comment on apparent trends revealed by the percentage changes computed in Requirement α.

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Percentage Change 2011 2010 Sales $1,300,000 $1,000,000 Cost of goods sold Gross margin Operating expenses Income before taxes Income taxes Net income 500,000 $ 400,000 300,000 200,000 61,000 S 200,000 53,000 $ 139,000 $ 147,000