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E13-3 (Algo) Preparing and Interpreting a Schedule for Horizontal and Vertical Analyses [LO 13-2, LO 13- 3, LO 13-5) According to the producer price Index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 3.8 percent between January and December 2018, Required: 1. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages for the income statement of Computer Tycoon Incorporated for the year ended December 31, 2018 2-a. Conduct a vertical analysis by expressing each line as a percentage of total revenues ces Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages for the income statement of Computer Tycoon Incorporated for the year ended December 31, 2018. (Decreases should be indicated by a minus sign. Round percentage values to 1 decimal place.) COMPUTER TYCOON, INCORPORATED Income Statements For the Yoar Ended December 31 Change in 2018 2017 Dollars Percentage Sales Revenue $ 104,000 $ 126,000 % Cost of Goods Sold 62,000 73,100 Gross Profit 42,000 52,900 Selling, General, and Administrative Expenses 36,400 37,800 % Interest Expense 540 495 % Income before Income Tax Expenso 5,060 14,605 % Income Tax Exponse 1,000 5,400 % Not Income $ 4,060 $ 9,205 % 5% Ren Reg 2A > bok n int Conduct a vertical analysis by expressing each line as a percentage of total revenues. (Round percentage values to 1 decimal place.) COMPUTER TYCOON, INCORPORATED Income Statements For the Year Ended December 31 2018 2017 Sales Revenue $ 104,000 % $ 126,000 % Cost of Goods Sold 62,000 % 73,100 % Gross Profit 42,000 % 52,900 % Selling, General, and Administrative Expenses 36,400 % 37,800 % Interest Expenso 540 % 495 % Income before Income Tax Expense 5,060 % 14,605 % Income Tax Expense 1,000 % 5,400 % Net Income 4,060 % $ 9,205 % ances SA