Prepare a horizontal analysis of the data for 2025 using 2024 as the base year. Federer Sports Apparel Income Statement For the Years Ended December 31 Year Increase (Decrease) 2025 2024 Amount % Revenues $ 18,800,000 $ 15,500,000 $3,300,000 21.3 Cost of goods sold 13,200,000 7,000,000 Gross profit 5,600,000 8,500,000 (2,900,000) (34.1) Operating expenses 1,600,000 1,200,000 400,000 33.3 Depreciation expense 1,000,000 1,000,000 Inventory write-down 200,000 0 200,000 Loss (litigation) 1,500,000 300,000 Income before tax 1,300,000 6,000,000 Income tax expense 450,000 2,000,000 Net income $ 850,000 $ 4,000,000 $(3,150,000) (78.8) Hints: To compute amount of change: Take the 2025 amount and subtract the 2024 amount. To compute percent of change: Take the amount of change and divide it by the amount in the base year, 2024. Revenues - COGS = Gross profit. In this problem, the amount of change is negative because gross profit went down from 2024 to 2025. Depreciation expense