2008		2007
Sales		$900,000		$725,000
Cost of Goods Sold		$558,000		$435,000
Gross Profit		$342,000		$290,000
Selling Expenses		$117,000		$116,000
Administrative Expenses		$63,000		$65,250
Total Operating Expenses		$180,000		$181,250
Operating Income		$162,000		$108,750
Income Tax Expense		$76,500		$58,000
Net Income		$85,500		$50,750
a. Prepare an income statement in comparative form, stating each item for
both 2008 and 2007 as a percent of sales. Round to one decimal place.
b. Comment on the significant changes disclosed by the comparative income
statement