Exercise 12-3A Prepare horizontal analysis (LO12-2)

Exercise 12-3A Prepare horizontal analysis (L012-2) The income statements for Federer Sports Apparel for 2022 and 2021 are presented below. Required: Prepare a horizontal analysis for 2022 using 2021 as the base year. (Decreases should be indicated with a minus sign. Round your percentage answers to 1 decimal place.) FEDERER SPORTS APPAREL Income Statement For the Years Ended December 31 Year Increase (Decrease) Amount % 2022 2021 Net sales $ $ Cost of goods sold Gross profit Operating expenses Depreciation expense Inventory write-down Loss (litigation) Income before tax 15,200,000 6,824,800 8,375,200 1,124,800 925,000 18,500,000 13,320,000 5,180,000 1,517,000 925,000 148,000 1,424,500 1,165,500 388,500 777,000 334,400 Income tax expense 5,991,000 1,915,200 4,075,800 Net income $