E17-5 Preparing and Interpreting a Horizontal (Trend) Analysis The average selling price of low-end laptops fell about $200 (25 percent) from $800 in 2008 to $600 in 2009. Let’s see whether these changes are reflected in the income statement of Computer Tycoon Inc. for the year ended December 31, 2009.

2008 2009 Sales revenues $121,761 $98,913 Cost of goods sold 71,583 59,249 Operating expenses 36,934 36,943 Interest expense 474 565 Income before income tax expense 12,770 2,156 Income tax expense 5,540 1,024 Net income $ 7,230 $ 1,132 Required: Conduct a horizontal analysis by calculating the year-to-year changes in each line item expressed in dollars and in percentages (rounded to one decimal place). How did the change in computer prices compare to the changes in Computer Tycoon’s sales revenues?