Problem 2. Financial statement analysis Give a vertical analysis of the statement shown below. ABC Co.Ltd Income Statement 31/12/46 100 ($1,000) 31/12/45 100 31/12/46 76,236 34,483 41.753 23,020 31/12/45 20,066 18,360 1,706 19,066 (12) (13) Sales Less cost of goods sold Gross income Less selling and administrative cxpense Operating income Less interest paid Income before tax Less tax expense Net income 18.733 958 17.775 (17,360) 1.110 (18,470) 17.775 (18,470) (14) (15) Give an horizontal analysis of the statement shown below. ABC Co.Ltd. Income Statement 31/12/46 31/12/45 Amount increase (decrease) ($1.000) Percent increase (decrease) 76,236 34,483 41.753 23,020 20,066 18,360 1,706 19.066 Sales Less cost of goods sold Gross income Less selling and administrative expense Operating income Less interest paid Income before tax Less tax expense Net income (17) 18.733 958 17.775 (17,360) 1.110 (18,470) 17.775 (18,470) (18)