Balance sheet data for Alvarez Company on December 31, the end of two recent fiscal years, follows: Current Previous Year Year Current assets $263,030 $163,200 Property, plant, and 535,130 455,600 equipment Intangible assets 108,840 61,200 Current liabilities 172,330 95,200 Long-term liabilities 353,730 265,200 Common stock 108,840 102,000 Retained earnings 272,100 217,600 Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets and each liability and stockholders' equity Alvaraz Company Comparative Balance Sheet For the Years Ended December 31 Current Current Previous Previous year year year year Amount Percent Amount Percent Current assets $263,030 $163,200 Property, plant, and equipment 535,130 455,600 Intangible assets 108,840 61,200 Total assets $907,000 $680,000 Current liabilities $172,330 $95,200 Long-term liabilities 353,730 265,200 Common stock 108,840 102,000 Retained earnings 272,100 217,600 Total liabilities and stockholders' equity $907,000 $680,000 Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Previous Year Sales Current Year 8348,000 295,000 $53,000 $290,000 250,000 Cost of goods sold Gross profit $40.000 Selling expenses Administrative expenses $14,300 12,980 $13,000 11,000 $27,280 $24,000 Total operating expenses Incone before income $25,720 $16,000 Income tax expenses Net income 10,300 $15,420 6,400 $9,500 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Previous Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent Seles S348,000 $200.000 $ Cost of goods sold 205.000 250.000 Gross profit $53,000 $40,000 $ Selling expenses $14,300 $13,000 $ Administrative expenses 12,980 11,000 Total operating expenses $27,280 $24,000 Income before income tax S25,720 $16,000 $ Income tax expense 10,300 1,400 Not income $15,420 $9,600 $ percentage in cost of goods sold. The cost of goods sold increased at a rate than b. The net income for Winthrop Company increased between years. This increase was the combined result of an in sales and the increase in sales, thus causing the percentage increase in gross profit to be than the percentage increase in sales