Horizontal analysis (trend analysis) percentages for Watson Company's sales, cost of goods sold, and expenses are listed here. $\begin{array}{lccl}\text { Horizontal Analysis }&2015&2014&2013\
\text { Sales revenue } & 98.2 \% & 104.8 \% & 100.0 \% \
\text { Cost of goods sold } & 102.5 & 98.0 & 100.0 \
\text { Expenses } & 108.6 & 96.4 & 100.0
\end{array}$ Instructions
Explain whether Watson's net income increased, decreased, or remained unchanged over the 3-year period.

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The Answer of Horizontal analysis (trend analysis) percentages for Watson Company's sales, cost of goods sold, and expenses are listed here. $\begin{array}{lccl}\text { Horizontal Analysis }&2015&2014&2013\
\text { Sales revenue } & 98.2 \% & 104.8 \% & 100.0 \% \
\text { Cost of goods sold } & 102.5 & 98.0 & 100.0 \
\text { Expenses } & 108.6 & 96.4 & 100.0
\end{array}$ Instructions
Explain whether Watson's net income increased, decreased, or remained unchanged over the 3-year period.

Horizontal Analysis (Trend Analysis) Percentages for Watson Company's Sales, Cost