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.