1. Using the income statement, calculate the vertical and horizontal analysis and insert your answers in the appropriate spaces provided

	VERTICAL ANALYSIS				HORIZONTAL ANALYSIS
Statement of Operations Income Statement	2017	Percent	2018	percent	CHANGE	PERCENT
Sales (net)	8,100,000		10,000,000
Cost of goods sold	5,300,000		6,000,000
Gross Margin	2,800,000		4,000,000
General Expense	(1,050,000.00)		(1,080,000)
Depreciation Expense	(300,000.00)		(300,000)
Operating Income	1,450,000.00		2,620,000
Interest Expense	(40,000.00)		(50,000)
Income Taxes (35%)	(507,500.00)		(917,000.00)
Net Income	902,500.00		1,653,000