Prepare a horizontal analysis of the comparative

Question

Prepare a horizontal analysis of the comparative income statement of CPA Tech, Inc. Each amount listed must be in your analysis with both a dollar and percent change noted. Round percentage changes to two decimal places

• CPA Tech, Inc.
• Comparative Income Statement
  
  • Years Ended December 31, 2006 and 2005

                                                                       2006                           2005

• Revenue                                                430,000                         373,000
• Expenses:
• Cost of Goods Sold                                  202,000                          188,000
• Selling and general expenses                     98,000                            93,000
• Interest Expense                                     10,000                            4,000
• Income tax expense                                 42,000                            37,000
• Total Expenses                                        352,000                          322,000

• Net Income                                             78,000                            51,000