Comparative Income Statements for Pearle Company Are Provided Below Required:
Perform a Horizontal Analysis of Pearle Company's Income Statement

Essay

Comparative income statements for Pearle Company are provided below: $\begin{array}{lll}\hline \quad \quad \quad \quad \quad \quad \quad \quad \text {Pearle Company }\\\hline \quad \quad \quad \quad \text { Comparative Income Statement }\\\hline \quad \quad \quad \quad \quad \text {Years Ended December 31 ,}\\\begin{array}{|l|l|l|}\hline & 2014&2013\\\hline \text { Sales } & \$ 595,000&532,200 \\\hline \text { Less cost of goods sold } & \underline { 386,200 } & \underline { 357,650 } \\\hline \text { Gross margin } &208,800&174,550 \\\hline \text { Less operating expenses } & \underline { 108,950 } & \underline { 99,770 } \\\hline \text { Income before taxes } & 99,850 & 74,780 \\\hline \text { Income taxes } & \underline { 39,940 } & \underline {29,912 } \\\hline \text { Net income } & \underline { \$59,910 } & \underline { \$ 44,868 } \\\hline\end{array}\end{array}$ Required:
Perform a horizontal analysis of Pearle Company's income statement by computing horizontal percentages for each item.Round your answer to one decimal place (i.e.22.5%).