Use the financial statements for Rhythmic Dance Studio to complete one horizontal analysis based on income statement balances and another based on balance sheet balances. $($Hint: Use amounts from two statements to create each horizontal analysis.$)$

Notes:

$$ All calculations throughout this exercise should be rounded to two decimal places.

Within your answer enter all accounts in the same order given in the instructions for the most recent year.

Rhythmic Dance Studio

Income Statement

For the Year Ended December $31,2026$

Revenues:

Service Revenue

$ $194,000$

Expenses:

Salaries Expense

$ $82,400$

Rent Expense

$32,275$

Supplies Expense

$8,370$

Telephone Expense

$7,000$

Utilities Expense

$6,200$

Depreciation Expense

$4,200$

Tota

Postage Expense

$2,700$

Miscellaneous Expense

$8,500$

Total Expenses

$151,645$

Net Income

$ $42,355$

Rhythmic Dance Studio

Income Statement

For the Year Ended December $31,2027$

Revenues:

Service Revenue

Expenses:

Salaries Expense

$ $101,450$

Rent Expense

$32,275$

Supplies Expense

$13,500$

Telephone Expense

$9,150$

Depreciation Expense

$6,300$

Utilities Expense

$5,850$

Postage Expense

$4,000$

Miscellaneous Expense

$17,200$

Total Expenses

Net Income

$ $261,500$

$189,725$

$ $71,775$