Step by step solution and formula. Make a Vertical and Horizontal Anaylsis and make a comment on the percentage.

Prepare a Vertical Analysis and a Horizontal Analysis on the Income Statement of All Might Co. by completing the tables provided. Also, please make a comment as to the percentages computed. Vertical Analysis: All Might Co. Comparative Income Statements For the Years Ended December 31, 2019 and December 31, 2018 2019 2018 Percent Amount Percent Sales 6,000,000.00 Cost of Sales 3,000,000.00 Gross Profit 3,000,000.00 Amount 5,000,000.00 3,000,000.00 2,000,000.00 500,000.00 1,000,000.00 500,000.00 100,000.00 400,000.00 Selling Expenses Administrative Expenses Operating Income Interest Expense Net Income 400,000.00 1,000,000.00 1,600,000.00 100,000.00 1,500,000.00 Horizontal Analysis: All Might Co. Comparative Income Statements For the Years Ended December 31, 2019 and December 31, 2018 Increase (Decrease) 2019 2018 Amount Percentage Sales 5,000,000.00 6,000,000.00 Cost of Sales 3,000,000.00 3,000,000.00 Gross Profit 2,000,000.00 3,000,000.00 Selling Expenses 500,000.00 400,000.00 Administrative Expenses 1,000,000.00 1,000,000.00 Operating Income 500,000.00 1,600,000.00 Interest Expense 100,000.00 100,000.00 Net Income 400,000.00 1,500,000.00