For 20Y2, Fielder Industries Inc. initiated a sales promotion campaign that included the expenditure of an additional $40,000 for advertising. At the end of the year, Leif Grando, the president, is presented with the following condensed comparative income statement: Fielder Industries Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $1,300,000 $1,180,000 Cost of goods sold (682,500) (613,600) Gross profit $617,500 $566,400 Selling expenses $(260,000) $(188,800) Administrative expenses (169,000) (177,000) Total operating expenses $(429,000) $(365,800) Operating income $188,500 $200,600 Other revenue 78,000 70,800 Income before income tax expense $266,500 $271,400 Income tax expense (117,000) (106,200) Net income $149,500 $165,200 Required: 1. Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to sales for each of the years. Round to one decimal place. For those boxes n which you must enter subtracted or negative numbers use a minus sign. Fielder Industries Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 2012 20Y2 20Y1 20Y1 Amount Percent Amount Percent Sales $1,300,000 % $1,180,000 Cost of goods sold (682,500) % (613,600) % Gross profit $617,500 % $566,400 % % Selling expenses $(260,000) % (188,800) % Administrative expenses (169,000) % (177,000) % Total operating expenses $(429,000) % $(365,800) % Operating income $188,500 % $200,600 % Other revenue 78,000 % 70,800 % Income before income tax expense $266,500 % $271,400 % Income tax expense (117,000) % (106,200) % Net income $149,500 % $165,200 % 2. The net income as a percent of sales has All the costs and expenses, other than selling expenses, have maintained their approximate cost as a percent of sales relationship between 2011 and 2012. Selling expenses as a percent of sales, however, have Apparently, the new advertising campaign been successful. The increased expense produced sufficient sales to maintain relative profitability. Thus, selling expenses as a percent of sales have