Slusher Company presents the following condensed comparative income statements for 2006, 2007, and 2008:

Required
Based on the preceding information for Slusher Company, prepare horizontal analyses for the years 2006, 2007, and 2008 using
(1) A year-to-year approach and
(2) A base-year-to-date approach. Do your analyses reveal any favorable or unfavorabletrends?

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For Years Ended December 31 2008 2007 2006 Sales (net) Cost of goods sold Gross profit Operating expenses Operating income Other items S120,000 S100,000 $85,000 72,000 55,000 (45,000) $ 48,000 45,000 $40,000 (22,000 20,000 (18,000) 26,000 25,000 $22,000 Dividend revenue Interest expense 400 500 1,000 200 (1.200(500) (8.200)8000(6,000) Income before income taxes 25,200 24,500 $21,700 Income tax expense Net income $ 17,000 16,500 $15,700 Number of common shares Earnings per share 6,000 $2.83$2.75 6,000 5,000 $3.14