For 2012, Selene Company initiated a sales promotion campaign that included the expenditure of an additional $25,000 for advertising. At the end of the year, Scott Brown, the president, is presented with the following condensed comparative income statement: Selene Company Comparative Income Statement For the Years Ended December 31, 2012 and 2011 2012 2011 Sales $999,600 $867,000 Sales returns and allowances 19,600 17,000 Net sales $980,000 $850,000 Cost of goods sold 460,600 433,500 Gross profit $519,400 $416,500 Selling expenses $225,400 $178,500 Administrative expenses 107,800 102,000 Total operating expenses $333,200 $280,500 Income from operations $186,200 $136,000 Other income 49,000 42,500 Income before income tax $235,200 $178,500 Income tax expense 98,000 85,000 Net income $137,200 $ 93,500 Instructions 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. Round to one decimal place. 2. To the extent the data permit, comment on the significant relationships revealed by the vertical analysis prepared in (1)