Current Year Previous Year Sales $4,000,000 $3,600,000 Cost of goods sold 2,280,000 1,872,000 Selling expenses 600,000 648,000 Administrative expenses 520,000 360,000 240,000 Income tax expense 216,000 a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round your answers to the nearest whole percentage. Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 Current year Current year Previous year Previous year Line Item Description Amount Percent Amount Percent Sales $4,000,000 % $3,600,000 % Cost of goods sold (2,280,000) % (1,872,000) % % % Selling expenses $(600,000) % $(648,000] % Administrative expenses (520,000) % (360,000) % Income tax expense (240,000) (216,000) % b. The vertical analysis indicates that the cost of goods sold as a percent of sales, selling expenses, Thus, net income as a percent of sales by 3 percentage points, and administrative expenses) by 5 percentage points. by 5 percentage points, while by 3 percentage points.