Refer to the information provided in E12€“2.
In E12€“2, The income statements for Federer Sports Apparel for 2016 and 2015 are presented below.

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

FEDERER SPORTS APPAREL Income Statements For the years ended December 31 2016 2015 Net sales $18,800,000 13,200,000 5,600,000 1,600,000 1,000,000 200,000 1,500,000 1,300,000 450,000 $ 850,000 $15,500,000 7,000,000 8,500,000 1,200,000 1,000,000 Cost of goods sold Gross proft Operating expenses Depreciation expense Inventory write-down Loss (litigation) Income before tax Income tax expense Net income 300,000 6,000,000 2,000,000 4,000,000