Current Year Previous Year Sales $565,000 $503,000 Cost of merchandise sold 333,350 271,620 Selling expenses 90,400 90,540 Administrative expenses 101,700 Income tax expense 16,950 85,510 20,120 a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers. Innovation Quarter Inc. Comparative Income Statement Sales Cost of merchandise sold For the Years Ended December 31 Current year Amount Current year Percent $565,000 % 333,350 % % Previous year Amount Previous year Percent $503,000 % 271,620 % % Selling expenses 90,400 % 90,540 % Administrative expenses 101,700 % 85,510 % % % % Income tax expense 16,950 % % % 20,120 % % b. The vertical analysis indicates that the cost of merchandise sold as a percent of sales by 2 percentage points, and administrative expenses by 3 percentage points. by 5 percentage points, while selling expenses by 1 percentage points. Thus, net income as a percent of sales