Current Year Previous Year Sales Cost of goods sold Gross profit $746,700 $570,000 627,200 490,000 $119,500 $80,000 Selling expenses $36,300 $30,000 Administrative expenses 32,250 25,000 Total operating expenses $68,550 $55,000 Income before income tax $50,950 $25,000 Income tax expenses. 20,400 10,000 Net income $30,550 $15,000 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decre required, round to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Previous year Amount year Amount Increase Increase (Decrease) (Decrease) Amount Percent Sales $746,700 $570,000 % Cost of goods sold 627,200 490,000 % Gross profit $119,500 $80,000 % Selling expenses $36,300 $30,000 % 32,250 25,000 % Administrative expenses Total oneration evnences $68.550 $55.000 $ 9/ Check My Work Income tax expenses Net income 20,400 10,000 $30,550 $15,000 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with 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 Sales $746,700 $570,000 % Cost of goods sold 627,200 490,000 % Gross profit Selling expenses $119,500 $80,000 $36,300 $30,000 % % Administrative expenses Total operating expenses Income before income tax Income tax expense Net income 32,250 25,000 $68,550 $50,950 $25,000 % $55,000 % % 20,400 10,000 $30,550 $15,000 % in sales and rate than t than the percentage increase in sales. b. The net income for Winthrop Company increased between years. This increase was the combined result of an in cost of goods sold. The cost of goods sold increased at al sales, thus causing the percentage increase in gross profit to be l percentage