The Following Items Were Taken from the Financial Statements of Gannon

Essay

The following items were taken from the financial statements of Gannon Inc, over a three-year period: $$\begin{array} { l r r r } & \underline { 2016 } & \underline { 2015 } & \underline { 2014 } \\\text { Net sales } & \$ 340,000 & \$ 330,000 & \$ 300,000 \\\text { Cost of goods sold } & 209,000 & 201,000 & 186,000 \\\text { Gross profit } & 131,000 & 129,000 & 114,000 \\\text { Net income } & 32,400 & 31,500 & 30,000\end{array}$$ Required:
A) Using horizontal analysis and 2014 as the base year, calculate the trend percentages for the items provided.Explain whether the trends are favourable or unfavourable for each item.