Example $7.$ Preparation of a Comparative Income Statement

Question: Whispering Corporation has provided the following income statement data for the fiscal years ended May $31,2015,$ and May $31,2016$: Sales revenue of $$500,000$ and $$600,000,$ cost of goods sold of $$300,000$ and $$350,000,$ operating expenses of $$100,000$ and $$120,000,$ and interest expense of $$10,000$ and $$15,000,$ respectively. Prepare a comparative income statement showing both the horizontal analysis $($percentage change$)$ and the trend analysis $($using $2015$ as the base year$).$ Provide detailed calculations.