Answer:
Computer Tycoon, Inc.
1. Horizontal Analysis, calculating the year-over-year changes in each line:
Computer Tycoon, Inc. Income Statements  For the Year Ended December 31    
                                                       2016         2015            Dollars      %
Sales Revenue                             $108,000  $132,000  -$24,000  -18.2%
Cost of Goods Sold                         64,000      74,700   -$10,700  -14.3%
Gross Profit                                      44,000     57,300   -$13,300  -23.2%
Selling, General, & Administrative
                          Expenses               36,800     38,600   -$1,800      -4.7%
Interest Expense                                  580           515     $65         +12.6%
Income before Income Tax Exp.      6,620       18,185  -$11,565     -63.6%
Income Tax Expense                         1,500       5,800   -$4,300     -74.1%
Net Income                                      $5,120    $12,385   -$7,265    -58.7%
2-A. Vertical analysis by expressing each line as a percentage of total revenues:
Computer Tycoon, Inc. Income Statements  For the Year Ended December 31    
                                                       2016            %             2015             %
Sales Revenue                             $108,000     100        $132,000    100
Cost of Goods Sold                         64,000      59             74,700     56.6
Gross Profit                                      44,000       41             57,300     43.4
Selling, General, & Administrative
                          Expenses               36,800       34           38,600       29.2
Interest Expense                                  580       0.5                515      0.4
Income before Income Tax Exp.      6,620        6              18,185      13.8
Income Tax Expense                         1,500       1.4             5,800       4.4
Net Income                                      $5,120       4.7         $12,385      9.4
2-B No. It made less profit per dollar of sales in 2016 compared to 2015.
Explanation:
a) Horizontal analysis is the analysis of financial statements to show changes in the amounts of corresponding financial statement items over a period of time.  It is used to evaluate the trend situations, using financial statements for two or more periods.
b) Vertical analysis is another technique for analyzing financial statements with each line item being listed as a percentage of a base figure within the statement.  For income statement, the base figure is usually the Sales Revenue, while for balance sheet, the base figure is the total assets.