Condensed data from the latest comparative statement of income of Squash Corp. follow: 2022 2021

2022 2021

Sales........................................................................... $1,240,000 $1,000,000

Cost of goods sold........................................................... 620,000 480,00

Gross profit....................................................................... 620,000 520,000

Operating expenses...................................................... 216,000 240,000

Income before income tax................................................ 404,000 280,000

Income tax expense....................................................... 121,200 84,000

Net income................................................................... $ 282,800 196,000

Instructions

(a) Prepare a vertical analysis for each year.

(b) Comment on the results.