For 2008, Pheonix Technology Company reported its mostsignificant decline in net

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For 2008, Pheonix Technology Company reported its mostsignificant decline in net income in years. At the end of theyear, Hai Chow, the president, is presented with the followingcondensed comparative income statement.                                               Comparative Income statement                                  For the years ended December 31, 2008 and 2007                                                        2008                  2007 Sales                                               385,000              343,200 Sales returns andallowance              4,800                  4,200 Netsales                                          380,200              340,000 Cost of goodssold                           180,000              144,000 Grossprofit                                      200,200              196,000 Sellingexpenses                                87,400                76,000 Administrativeexpenses                    30,000                24,000 Total operatingexpenses                  117,400              100,000 Income fromoperations                    82,800                96,000 Otherincome                                    1,600                 1,600 Income before incometax                 84,400                97,600 Income taxexpense                          36,800                32,000 Netincome                                      47,600                 65,600 Prepare a comparative income statement with horizontalanalysis for the two-year period, using 2007 as the baseyear. Round to one decimal Place. For 2008, Pheonix Technology Company reported its mostsignificant decline in net income in years. At the end of theyear, Hai Chow, the president, is presented with the followingcondensed comparative income statement.                                               Comparative Income statement                                  For the years ended December 31, 2008 and 2007                                                        2008                  2007 Sales                                               385,000              343,200 Sales returns andallowance              4,800                  4,200 Netsales                                          380,200              340,000 Cost of goodssold                           180,000              144,000 Grossprofit                                      200,200              196,000 Sellingexpenses                                87,400                76,000 Administrativeexpenses                    30,000                24,000 Total operatingexpenses                  117,400              100,000 Income fromoperations                    82,800                96,000 Otherincome                                    1,600                 1,600 Income before incometax                 84,400                97,600 Income taxexpense                          36,800                32,000 Netincome                                      47,600                 65,600 Prepare a comparative income statement with horizontalanalysis for the two-year period, using 2007 as the baseyear. Round to one decimal Place. Prepare a comparative income statement with horizontalanalysis for the two-year period, using 2007 as the baseyear. Round to one decimal Place.

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