For 2012, Othere Technology Company initiated a sales promotion campaign that included the expenditure of an additional $24,000 for advertising. At the end of the year, George Wallace, the president, is presented with the following condensed comparative income statement: Othere Technology Company Comparative Income Statement For the Years Ended December 31, 2012 and 2011 2012 2011 Sales $873,650 $766,320 Sales returns and allowances 8,650 22,320 Net sales $865,000 $744,000 Cost of goods sold 415,200 342,240 Gross profit $449,800 $401,760 Selling expenses $181,650 $133,920 Administrative expenses 77,850 89,280 Total operating expenses $259,500 $223,200 Income from operations $190,300 $178,560 Other income 34,600 44,640 Income before income tax $224,900 $223,200 Income tax expense 86,500 89,280 Net income $138,400 $133,920 Instructions: Hide 1. Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to net sales for each of the years. Enter percentages as whole numbers. OTHERE TECHNOLOGY COMPANY Comparative Income Statement For the Years Ended December 31, 2012 and 2011 2012 Amount 2012 Percent 2011 Amount 2011 Percent Sales $ 873,650 % $ 766,320 % Sales returns and allowances 8,650 22,320 Net sales $ 865,000 % $ 744,000 % Cost of goods sold 415,200 342,240 Gross profit $ 449,800 % $ 401,760 % Selling expenses 181,650 % 133,920 % Administrative expenses 77,850 89,280 Total operating expenses $ 259,500 % $ 223,200 % Income from operations $ 190,300 % $ 178,560 % Other income 34,600 44,640 Income before income tax $ 224,900 % $ 223,200 % Income tax expense 86,500 89,280 Net income $ 138,400 % $ 133,920 %