Data for Kalil, Inc follows

Kalil, Inc
Comparative Income Statement
Years Ended Dec. 31, 2017 and 2016

2017 2016
Net Sales Revenue $550,000 $500,000
Expenses:
Cost of Goods Sold 245,000 220,000
Selling and Administrative Expenses 100,000 96,000
Other Expenses (Interest Expense) 12,000 9,000
Income Tax Expense 58,000 47,000
Total Expenses $415,000 $372,000
Net Income $135,000 $128,000

Prepare a horizontal analysis of the comparative income statement of Kalil, Inc (Round to one decimal place.) Use a multi-step format for the income statement.
What will be an ideal response

Comparative Income Statement—Horizontal Analysis

Kalil, Inc.
Comparative Income Statement
Years Ended Dec 31, 2017 and 2016
Increase (Decrease)
2017 2016 Amount Percentage
Net Sales $550,000 $500,000 $50,000 10.0
Cost of Goods Sold 245,000 220,000 25,000 11.4
Gross Profit 305,000 280,000 25,000 8.9
Operating Expenses:
Selling and Administrative expenses 100,000 96,000 4,000 4.2
Operating Income 205,000 184,000 21,000 11.4
Other Revenues and (Expenses):
Interest Expense (12,000 ) (9,000 ) (3,000 ) 33.3
Total Other Revenues and (Expenses) (12,000 ) (9,000 ) (3,000 ) 33.3
Income Before Income Taxes 193,000 175,000 18,000 10.3
Income Tax Expense 58,000 47,000 11,000 23.4
Net Income $135,000 $128,000 $7,000 5.5