The Stair Company sells computer parts through a retail store that it operates. The firms comparative income statement and balance sheet for the years 2019 and 2018 are shown below.

Required:

1. 1-a. Complete both a horizontal and a vertical analysis of comparative income statement for the years 2019 and 2018.

Complete both a horizontal and a vertical analysis of comparative income statement for the years 2019 and 2018. (Round your percentage answers to 1 decimal place. i.e., 0.123 should be entered as 12.3.)

The Stair Company Comparative Income Statement For Years Ended December 31, 2019 and 2018 Amounts Percent of net sales Increase or (Decrease) Account name 2019 2018 2019 2018 Amount Percent Revenue Sales 1,025,000 818,400 % % % Less Sales Returns and Allowances 25,000 18,400 % % % Net Sales 1,000,000 800,000 0.0 % 0.0 % 0 % Cost of Goods Sold Merchandise Inventory, January 1 90,000 88,800 % % % Net Purchases 369,500 297,600 % % % Total Merchandise Available for Sale 459,500 386,400 0.0 % 0.0 % $0 % Less Merchandise Inventory, December 31 96,000 90,000 % % % Cost of Goods Sold 363,500 296,400 % % % Gross Profit on Sales 636,500 503,600 0.0 % 0.0 % 0 % Operating Expenses Selling Expenses Sales Salaries Expense 89,000 80,000 % % % Payroll Tax ExpenseSelling 9,000 8,800 % % % Other Selling Expenses 31,600 20,000 % % % Total Selling Expenses 129,600 108,800 0.0 % 0.0 % $0 % General and Administrative Expenses Officers' Salaries Expense 156,000 121,600 % % % Payroll Tax ExpenseAdministrative 17,000 11,200 % % % Depreciation Expense 8,000 8,000 % % % Other General and Administrative Expenses 16,000 11,200 % % % Total General and Administrative Expenses 197,000 152,000 0.0 % 0.0 % $0 % Total Operating Expenses 326,600 260,800 % % % Net Income Before Income Taxes 309,900 242,800 % % % Income Tax Expense 92,970 72,840 % % % Net Income After Income Taxes 216,930 169,960 0.0 % 0.0 % $0 %