Book Show Me How Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31 are as follows: Current Year Previous Year Sales Cost of merchandise sold Gross profit $359,600 $290,000 302,500 250,000 $57,100 $40,000 Selling expenses $15.960 $14,000 Administrative expenses 14,640 12,000 Total operating expenses $30,600 $26,000 Income before income tax expense $26.500 $14.000 Income tax expenses 10.600 Net income $15,900 5,600 $8,400 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 Sales Comparative Income Statement For the Years Ended December 31 Current Previous Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent $359.600 $290.000 Cast of merchandise sold 302,500 250.000 Grass profe $57.100 $40.000 Selling expens $15,940 $14,000 Administrative expenses 14.640 12.000 Total soerating exp $30.600 $36.000 Book Net income Show Me How $97,200 3% a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. If required, round percentages to one decimal place. Enter all amounts as positive numbers. Tannenhill Company Common-Sized Income Statement For the Year Ended December 31 Tannenhill Tannenhill Electronics Company Company Industry Amount Percent Average Sales $2,430,000 9 100.0% Cost of merchandise sold 1,287,900 59% Gross profe $1,142.100 " Selling expenses $729,000 25% Administrative expenses 267,300 10% Total operating expenses $996.300 35% Income from operations $145.000 Other revenue and expe Other revenue Other expense 40.400 (24.300) Income before incom $170.100 Income tax expense Net income 72,900 $97.200 1212141 b. The company is managing the coat of manufacturing product combined impact causes net income as a percent of sales to be, than the industry, and har slightly selling and administrative expenses relative to the industry. The than the industry averag