M13-1 Using the following income statements, perform the calculations needed for horizontal analyses.

Using the following income statements, perform the calculations needed for horizontal analyses. Round percentages to one decimal place.

                           LOCKEY FENCING CORPORATION

                           Income Statements

                          For the year ended December 31

            2013                   2012

           Amounts          Amounts

Net Sales $100,000.00         $75,000.00 

Cost of Goods Sold   $58,000.00         $45,000.00 

Gross Profit   $42,000.00         $30,000.00 

Selling, General, and Administrative Expenses $9,000.00 $4,500.00 

Income from Operations$33,000.00 $25,500.00 

Interest Expense $3,000.00 $3,750.00 

Income before Income Tax  $30,000.00 $21,750.00 

Income Tax Expense $9,000.00 $6,525.00 

Net Income $21,000.00 $15,225.00