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

Essay

Comparative income statements for Chicago Company are provided below:
$\begin{array}{c}\text { Chicago Company}\\\text { Comparative Income Statement}\\\text { Years Ended December 31,}\\\begin{array}{lrr}&\text { Year } 2 &\text { Year } 1\\\text { Sales } & \$ 288,000 & \$ 302,190 \\\text { Less cost of goods sold } & 101,350 & 115,400\\\text { Gross margin } & 186,650& 186,790 \\\text { Less operating expenses } & 89,970 & 99,770 \\\text { Income before taxes } & 96,680 & 87,020 \\\text { Income taxes } & 38,672 & 34,808 \\\text { Net income } & \$ 58,008 & \$ 52,212\end{array}\end{array}$
Required:
Perform a horizontal analysis of Chicago Company's income statement by computing horizontal percentages for each item.Round your answer to one decimal place (i.e.,22.5%).