Question

Horizontal analysis (trend analysis) percentages for Spartan Company’s sales, cost of goods sold, and expenses are listed here.

Horizontal Analysis
. 2012 2011 2010
Sales 96% 105% 100%
Cost of goods sold 101 98 100
Expenses 105.6 95.4 100

Explain whether Spartan’s net income increased, decreased, or remained unchanged over the 3-year period.