Record your responses on the spreadsheet provided.

Part A: Horizontal Analysis

Item	2015	2014	2013
Net Sales	$980 000	$900 000	$650 000
Cost of Goods Sold	700 000	640 000	480 000
Gross Profit	$280 000	$260 000	$170 000

Instructions:

1. Using horizontal analysis, calculate the trend percentages for net sales, cost of goods sold, and gross profit based on the data provided for Mason Corporation.
2. Explain whether the trends are favourable or unfavourable for each item.

spreasheet

Mason Corporation
Comparative Income Statement
December 31
				Increase (Decrease)		Increase (Decrease)
				during 2015		during 2014
	2015	2014	2013	Amount	%	Amount	%
Net Sales	980,000	900,000	650,000
Cost of Goods Sold	700,000	640,000	480,000
Gross Profit