# The following data (in millions) were taken from the financial statements of Costco Whole-sale Corporation:RecentYearPriorYear\$116,199\$112,640RevenueOperating expensesOperating income112,5753,624109,420\$3,220a. For Costco, determine the amount of change in millions and the percent of change(round to one decimal place) from the prior year to the recent year for:1. Revenue2. Operating expenses3. Operating incomeComment on the results of your horizontal analysis in part (a)b.

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Step 1

Horizontal analysis of income statement:

In horizontal analysis of income statement, the amount of each item of the current year financial statement is compared with the previous year financial statement. The amount of each item increased or decreased in the current income statement, and its respective percentage can be computed by taking the earlier statement as the base.

Step 2

a.

Determine the amount of change in millions, and the percentage of change from t...

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