Refer to the information provided in E12€“2.
In E12€“2, The following table shows Federer Sports Apparel€™s income statements for 2016 and 2015.

Required:
Prepare a horizontal analysis for 2016 using 2015 as the baseyear.

FEDERER SPORTS APPAREL Income Statements For the Years Ended December 31 2015 S18,200,000 2016 Revenues S20,000,000 Cost of goods sold Gross profit Operating expenses Depreciation expense Inventory write-down Loss (litigation) 5,000,000 1.800.000 1,200,000 6.900.000 2,000,000 1.100.000 500.000 Income before tax 1.400,000 3,100,000 Income tax expense 400000 1.000.000 Net income