1,220,000 1,000,000 2,990,000 2,500,000 .. . 256,950 Income before income tax Income tax expense . 225,000 $ 2,566,950 $ 2,725,000 1,413,000 1,500,000 5 1.153,950 1.225,000 . . . . . . . . .. . . . . . . .. . . . . . . . .. Instructions 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Round percentages to one decimal place. 2. To the extent the data permit, comment on the significant relationships revealed by the horizontal analysis prepared in (). PR 17-2A Vertical analysis of income statement For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $50,000 for advertising. At the end of the year, Lu Neer, the president, is presented with the following condensed comp statement OBJ. 2 (Continued) engage Learning All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202