Question 1 The income statement for Richetti Ltd. is shown below RICHETTI LTD Income Statement Year Ended December 31 (in millions) 2018 2017 2016 Sales Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income tax Income tax expense Net income $1,607 $1,414 $1,189 604 585 901 749 706 665 188 79 109 27 518 407 401 258 50 208 52 S82 $156 $108 184 40 144 36 Using horizontal analysis, calculate the horizontal percentage of a base-year amount, assuming 2016 is the base year. (Round answers to 1 decimal place, eg. 5.2% RICHETTI LTD Horizontal Analysis of Income Statement (% of base-year amount) Year Ended December 31 2018 2017 2016 Sales Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income tax Income tax expense Net income