The income statements for Galaxy Tennis for the years ending December 31, 2024 and 2023, are provided below.

Required:
1. Complete the “Amount” and “%” columns to be used in a horizontal analysis of Galaxy Tennis income statement.
2. Discuss the major fluctuations in income statement items during the year.

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Net sales Cost of goods sold Gross profit Operating expenses Operating income Other income (expense) Income before tax Income tax expense Net income GALAXY TENNIS Income Statements For the years ended December 31 2024 $6,150,000 2,850,000 3,300,000 1,510,000 1,790,000 60,000 1,850,000 390,000 $1,460,000 2023 $6,250,000 2,920,000 3,330,000 1,390,000 1,940,000 85,000 2,025,000 435,000 $1,590,000 Increase (Decrease) Amount %