a. Prepare a horizontal analysis using 2020 as the base year, using the following chart:

	2021	2020	Dollar Change	Percent Change
Net sales	$600,000	$500,000
Cost of goods sold	483,000	420,000
Gross profit	117,000	80,000
Operating expenses	57,200	44,000
Net income	$59,800	$36,000

b. Prepare a vertical analysis for both years, using the following chart.

	2021	2020	2021 Percent	2020 Percent
Net sales	$600,000	$500,000
Cost of goods sold	483,000	420,000
Gross profit	117,000	80,000
Operating expenses	57,200	44,000
Net income	$59,800	$36,000

c. In reviewing the results of the horizontal and vertical analysis, what trends do you see?