MARINER DESIGNS, INC._ horizontal analysis

Performing horizontal analysis-income statement

Data for Mariner Designs, Inc. follow:

MARINER DESIGNS, INC.

Comparative Income Statement

Years Ended December 31, 2015 and 2014

2015 2014

Net Sales Revenue $ 431,000 $ 372,350

Expenses:

Cost of Goods Sold 200,000 187,550

Selling and Administrative Expenses 99,000 91,050

Other Expenses 8,350 6,850

Total Expenses 307,350 285,450

Net Income $123,650 $ 86,900

Requirements

1. Prepare a horizontal analysis of the comparative income statement of Mariner Designs, lnc (Round percentage changes to one decimal place.)

2. Why did 2015 net income increase by a higher percentage than net sales revenue.