eBook Show Me How Print tem 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 $2,240,000 $2,000,000 Cost of goods sold (1,925,000) (1,750,000) Gross profit $315,000 $250,000 Selling expenses $(152,500) $(125,000) Administrative expenses (118,000) (100,000) Total operating expenses $(270,500) $(225,000) Income before income tax expense $44,500 $25,000 Income tax expense (17,800) (10,000) $26,700 $15,000 Net income CO 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 your answers to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Year Line Item Description Sales Cost of goods sold Gross profit Amount Previous Year Amount Increase Increase (Decrease) (Decrease) Amount Percent $2,240,000 $2,000,000 % (1,925,000) (1,750,000) % $315,000 $250,000 Callien noncon Check My Work 2 more Check My Work uses remaining eBook Show Me How Printem Income tax expense Net income (17,800) $26,700 (10,000) $15,000 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 your answers to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Increase Increase Line Item Description Sales Previous Year Amount $2,240,000 Year Amount $2,000,000 (Decrease) (Decrease) Amount Percent % % Cost of goods sold Gross profit (125,000) (1,750,000) $315,000 $250,000 Selling expenses $(152,500) $(125,000) Administrative expenses (118,000) (100,000) Total operating expenses $(270,500) $(225,000) % Income before income tax expense $44,500 $25,000 Income tax expense (17,800) (10,000) % $26,700 $15,000 Net income CO b. The net income for Winthrop Company increased between years. This increase was the combined result of anj in cost of goods sold. The cost of goods sold increased at a sales, thus causing the percentage increase in gross profit to be percentage [ in sales and a rate than the increase in than the percentage increase in sales. Check My Work 2 more Check My Work uses remaining Previous Next> Says and Exit Submit Assignment for Grading