EX 17-1 Vertical analysis of income statement OBJ. 2 Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Sales Cost of merchandise sold Selling expenses Administrative expenses Income tax expense Current Year Prior Year $4,000,000 $3,600,000 2,280,000 1,872,000 600,000 648,000 520,000 360,000 240,000 216,000 a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round to the nearest whole percentage. b. Comment on the significant changes disclosed by the comparative income statement.