For 2012, Selene Company initiated a sales promotion campaign that included the expenditure of an additional $25,000 for advertising. At the end of the year, Scott Brown, the president, is presented with the following condensed comparative income statement:

Instructions
1. Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to net sales for each of the years. Round to one decimal place.
2. To the extent the data permit, comment on the significant relationships revealed by the vertical analysis prepared in(1).

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Selene Company Comparative Income Statement For the Years Ended December 31, 2012 and 2011 2012 2011 $867,000 17,000 $850,000 433,500 $416,500 $178,500 102,000 $280,500 136,000 42,500 $178,500 85,000 $137 200 93,500 5999,600 19,600 $980,000 460,600 Selling expenses $225,400 107,800 $333,200 $186,200 49,000 5235,200 98,000 Income tax expense Net income