Prepare a horizontal analysis of the following comparative income statement of The Slate Group.

Why did net income increase by a higher percentage than net sales revenue during 2017?

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The Slate Group Income Statement For the Years Ended December 31, 2017 and 2016 (amounts In thousands) 2017 460,000 S 216,200 243,800 S 105,800 138,000 S 9,000 129,000 S 18,600 110,400 $ 2016 400,000 200,000 200,000 100,000 100,000 6,000 94,000 14,000 80,000 6 Sales revenues Less: Cost of goods sold 8 Gross profit Less: Operating expenses 9. 10 Operating Income 11 Less: Interest expense 12 Income before Income taxes 13 Less: Income tax expense 14 Net Income 15