EX 17-5 Horizontal analysis of the Income statement Income statement data for Winthrop Company for two recent years ended December 31 are as follows: LOW Current Year Prior Year $2.280.000 $2.000.000 Cast of merchandise sold 1,960,000 1.750.000 Gross profit $ 320,000 $ 250.000 Selling expenses $ 156,500 $ 125.000 Administrative expenses 122.000 100,000 Total operating expenses $ 278,500 $ 225.000 Income before income tax expense $ 41 500 $ 25,000 Income tax expense 16,600 10,000 Net income 5 24,900 $ 15.000 a. Prepare a comparative income statement with horizontal analysis, indicating the in- crease (decrease) for the current year when compared with the prior year. Round percentages to one decimal place. b. What conclusions can be drawn from the horizontal analysis