Buslines Inc.?s income statement (condensed) for two years is shown below:

Required:1. Prepare vertical percentage analysis of the income statement. Round to the nearest percent. Comment on any particularly notable changes from 20X4 to 20X5.2. Prepare a horizontal percentage analysis of the income statement. Use a single-step format. Round to the nearest percent. Comment on any significant changes from 20X4 to 20X5.

31 December Gross sales Sales returns Cost of goods sold Gross margin Expenses: Selling expenses Administrative expenses Restructuring Interest Income tax expense Net income and comprehensive income 20X4 $550,000 (10,000) 540,000 (170,000) 370,000 180,600 125,600 10,800 5,400 14,400 336,800 $ 33,200 20X5 $606,000 (6,000) 600,000 (280,000) 320,000 170,700 106,000 8,000 6,000 7,300 298,000 $ 22,000