Income statement data for Cascade Images Inc. for the years ended December 31, 20Y5, and 20Y4, are as follows:

a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for 20Y5 when compared with 20Y4. Round to one decimal place.

b. What conclusions can be drawn from the horizontal analysis?

2014 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax Income tax expense Net income 2045 $500,000 (320,000) $180,000 $ (35,000) (25,000) $ (60,000) $ 120,000 (45,000) $ 75,000 $ 400,000 (250,000) $ 150,000 $ (30,000) (25,000) $ (55,000) $ 95,000 (40,000) $ 55,000