Horizontal Analysis 2018 & 2017. Conduct the following horizontal analyses of findings related to these analysis. You may use EXCEL or a similar program for this question. That is, I would suggest you recreate the financial statements in an Excel tab or tabs, and make the computations directly on that file. (I will be sure to give you a thumbs up if the work is correct).

1. First, describe the purposes of conducting a horizontal analysis AND how it is computed (do this using one formula for a horizontal analysis). Then conduct the following:
   1. Horizontal analysis of the income statement for 2018.

RECREATIONAL EQUIPMENT, INC. Consolidated Statements of Comprehensive Income Periods ended December 29, 2018 and December 30, 2017 (In thousands) December 31, 2017 - December 29, 2018 January 1. 2017- December 30, 2017 2.622.776 1,482,580 $ 2,781,909 1,567.202 1.214,707 1.140.196 561.851 466,405 1,028,256 515,038 436,658 951,696 186,451 188,500 1,328 Net sales Cost of sales Gross profit Operating expenses Payroll-related expenses Occupancy, general and administrative Operating expenses Operating income Other income (expense), net Income before patronage dividends and income taxes Patronage dividends, net Income before income taxes Provision for income taxes Net income Other comprehensive loss: Unrealized loss on available-for-sale securities, net of tax of (510) and $35, respectively Comprehensive income (2.320) 186,180 187.779 129.635 58,144 121,959 64,221 11,046 33,696 47,098 30,525 (345) 46.753 (35) 30,490 S See accompanying notes to consolidated financial statements