Q8. Using the below income statement, perform horizontal and vertical analysis. Round percentages to one decimal place.

Hint: for vertical analysis, use net sales as the base.

LOCKEY FENCING CORPORATION Income Statements For the Years Ended December 31 Current Year Previous Year Net Sales $100,000 $75,000 Cost of Goods Sold 58.000 45,000 Gross Profit 42,000 30,000 Selling, General, and Administrative Expenses 9,000 4,500 Income from Operations 33,000 25,500 Interest Expense 3,000 3,750 Income Before Income Tax 30,000 21,750 Income Tax Expense 9.000 6,525 Net Income $ 21,000 $15,225