Data for Mariner Designs, Inc., follow:
MARINER DESIGNS, INC.
Comparative Income Statement
Year Ended December 31, 2012 and 2011
2012 2011
Net sales revenue $431,000 $372,350
Expenses:
Cost of goods sold $200,000 $187,550
Selling and general expenses 99,000 91,050
Other expense 8,350 6,850
Total expense $307,350 $285,450
Net income $123,650 $86,900
Required:
1. Prepare a horizontal analysis of the comparative income statement of Mariner Designs, Inc. Round percentage changes to one decimal place.
2. Why did 2012 net income increase by a higher percentage than net sales revenue?