The following information is taken from the records of Erie Corp. (in thousands) for the year ended on December 31: 2019 2018 Sales $1,397 $1,122 Cost of Goods Sold 935 814 Selling Expenses 154 121 General Expenses 88 77 Other Revenue 4 7 Interest Expense 2 9 Income Taxes 134 66 After preparing a vertical analysis of this income statement data, what were the favorable and unfavoralbe changes?

Favourable Changes:

Sales

Gross Profit

Operating Income

Interest Expense

Net Income

Unfavourable Changes:

Cost Of Sales

Selling Expenses

General Expenses

Other Revenue

Income Taxes

Explanation:

Observe Movement from 2018 results to 2019 results

Erie Corp

Vertical Analysis of Income Statement

2019 2018

Sales 1,397 1,122

Less Cost Of Sales 935 814

Gross Profit 462 308

Less Operating Expenses

Selling Expenses 154 121

General Expenses 88 77

Operating Income 220 110

Less Non - Operating Expenses

Other Revenue 4 7

Interest Expense 2 9

Income Taxes 134 66

Net Income 88 42