Comparative Income Statements for Chicago Company Are Provided Below Required:
Perform a Horizontal Analysis of Chicago Company's Income Statement

Comparative income statements for Chicago Company are provided below:
$\begin{array}{c}\text {Chicago Company}\\\text {Comparative Income Statement}\\\text {Years Ended December 31,}\\\begin{array}{lrr}&\text {Year 2}&\text {Year 1}\\\text { Sales } & \$288,000 & \$ 302,190 \\\text { Less cost of goods sold } & 101,350 & 115,400 \\\text { Gross margin } &186,650 & 186,790 \\\text { Less operating expenses } & 89,970&99,770\\\text { Income before taxes } & 96,680&87,020\\\text { Income taxes } & 38,672 & 34,808\\\text { Met income } & \$ 58,008 & \$ 52,212\end{array}\end{array}$ Required:
Perform a horizontal analysis of Chicago Company's income statement by computing horizontal percentages for each item. Round your answer to one decimal place (i.e., 22.5%).

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