Score Part 3:Horizontal analysis ( 24 %) 1. Please conduct a horizontal analysis for Guangwai Company using its income statement in 2018 and 2019 in the table below. (18%) Guangwai Company Income Statements For the Years Ended December 31 Increase (Decrease) 2019 2018 Amount Sales 2,058, 000 1, 267, 200 Cost of goods sold 1,350,000 780,000 Gross margin 708,000 487,200 Operating expenses 550, 500 302, 400 Net operating income 157,500 184, 800 Interest expense 22,500 21,600 Net income before taxes 135,000 163, 200 Less income taxes (30%) 40, 500 48,960 Net income 94,500 114,240 2. Please write a short summary of less than 50 words for Guangwai company with the results of your horizontal analysis. Please (1) summarize the main changes and (2) raise possible reasons for such changes. (6%)