The income statements for Anything Tennis for the years ending December 31, 2018 and 2017, are provided below. Required:
Complete the "Amount" and "%" columns to be used in a horizontal analysis of the income statements for Anything Tennis.
(Increase (Decrease)
2018 2017 Amount %
Net sales $3,525,000 2,640,000
Cost of goods sold 2,160,000 1,385,000
Gross profit 1,365,000 1,255,000
Operating expenses 815,000 634,000
Operating income 550,000 621,000
Other income (expense) 10,200 6,100
Income before tax 560,200 627,100
Income tax expense 100,500 141,000
Net income $459,700 $486,100

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.