Lewis Company Has a Condensed Income Statement as Shown REQUIRED:
Prepare a Horizontal Analysis of Lewis Company's Income Statements

Essay

Lewis Company has a condensed income statement as shown:
$\begin{array}{|l|r|r|}\hline & {\text { Year 2 }} & {\text { Year 1 }} \\\hline \text { Sales } & \$ 178,400 & \$ 162,500 \\\hline \text { Wage expenses } & \$ 100,000 & \$ 92,500 \\\hline \text { Rent expenses } & 33,000 & 30,000 \\\hline \text { Utilities expenses } & 30,000 & 25,000 \\\hline \text { Total operating expenses } & \$ 163,000 & \$ 147,500 \\\hline \text { Net income } & \$ 15,400 & \$ 15,000 \\\hline\end{array}$ REQUIRED:
Prepare a horizontal analysis of Lewis Company's income statements.Comment on the trends,both favorable and unfavorable.