E13-3 Preparing and Interpreting a Schedule for Horizontal and Vertical Analyses According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 4.8 percent between 2009 and 2010. Required: 1. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentagesfor the income statement of computer Tycoon for the year ended December 31, 2010. (Decreases should be indicated by a minus sign. Round percentage values to 1 decimal place.) COMPUTER TYCOON, INC. Income Statements Year Ended December 31 change in 2010 2009 Dollars Percentage Sales Revenue 100,000 120,000 Cost of Goods Sold 60,000 71,500 Gross Profit 40,000 48,500 Selling, General and Administrative Expenses 36,000 37,000 Interest Expense 500 475 Income before Income Tax 3,500 11,025 Income Tax Expense 1,000 5,000 Net Income 3 2,500 S 6,025