Required:

Note: Use cells A$9$ to F$57$ from the given information to complete this question.

a$.$ Conduct a year over year horizontal analysis of the income statement.

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{6\}\{|$c$|\}\{$Income Statement$\}\backslash \backslash$

$\backslash$hline & Year $3$ & $\backslash \%$ Change & Year $2$ & $\backslash \%$ Change & Year $1\backslash \backslash$

$\backslash$hline Total net sales & $543,822$ & & $458,824$ & & $282,141\backslash \backslash$

$\backslash$hline Cost of sales & $317,844$ & & $268,005$ & & $155,523\backslash \backslash$

$\backslash$hline Gross Profit & $225,978$ & & $190,819$ & & $126,618\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{6\}\{|$l$|\}\{$Operating expenses:$\}\backslash \backslash$

$\backslash$hline Salaries and wages & $150,663$ & & $123,482$ & & $75,573\backslash \backslash$

$\backslash$hline Marketing & $34,501$ & & $38,292$ & & $15,387\backslash \backslash$

$\backslash$hline General and administrative & $9,213$ & & $6,762$ & & $3,435\backslash \backslash$

$\backslash$hline Other & $101$ & & $24$ & & $42\backslash \backslash$

$\backslash$hline Total operating expenses & $194,478$ & & $168,560$ & & $94,437\backslash \backslash$

$\backslash$hline Operating income & $31,500$ & & $22,259$ & & $32,181\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{6\}\{|$l$|\}\{\}\backslash \backslash$

$\backslash$hline Interest Income & $526$ & & $636$ & & $360\backslash \backslash$

$\backslash$hline Interest Expense & $2,199$ & & $1,662$ & & $2,065\backslash \backslash$

$\backslash$hline Other income & $4,521$ & & $4,266$ & & $3,369\backslash \backslash$

$\backslash$hline Total non$-$operating income & $2,848$ & & $3,240$ & & $1,664\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{6\}\{|$l$|\}\{\}\backslash \backslash$

$\backslash$hline Net Income & $34,348$ & & $25,499$ & & $33,845\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$