For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $22,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement:

Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1
	20Y2		20Y1
Sales	$803,000		$691,000
Cost of goods sold	393,470		373,140
Gross profit	$409,530		$317,860
Selling expenses	$168,630		$138,200
Administrative expenses	88,330		89,830
Total operating expenses	$256,960		$228,030
Income from operations	$152,570		$89,830
Other revenue	48,180		20,730
Income before income tax	$200,750		$110,560
Income tax expense	80,300		41,460
Net income	$120,450		$69,100

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. Enter percentages as whole numbers. Enter all amounts as positive numbers.

Tri-Comic Company
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
	20Y2 Amount	20Y2 Percent	20Y1 Amount	20Y1 Percent
Sales	$803,000	fill in the blank c4403e083ff501f_1%	$691,000	fill in the blank c4403e083ff501f_2%
Cost of goods sold	393,470	fill in the blank c4403e083ff501f_3%	373,140	fill in the blank c4403e083ff501f_4%
Gross profit	$409,530	fill in the blank c4403e083ff501f_5%	$317,860	fill in the blank c4403e083ff501f_6%
Selling expenses	$168,630	fill in the blank c4403e083ff501f_7%	$138,200	fill in the blank c4403e083ff501f_8%
Administrative expenses	88,330	fill in the blank c4403e083ff501f_9%	89,830	fill in the blank c4403e083ff501f_10%
Total operating expenses	$256,960	fill in the blank c4403e083ff501f_11%	$228,030	fill in the blank c4403e083ff501f_12%
Income from operations	$152,570	fill in the blank c4403e083ff501f_13%	$89,830	fill in the blank c4403e083ff501f_14%
Other revenue	48,180	fill in the blank c4403e083ff501f_15%	20,730	fill in the blank c4403e083ff501f_16%
Income before income tax	$200,750	fill in the blank c4403e083ff501f_17%	$110,560	fill in the blank c4403e083ff501f_18%
Income tax expense	80,300	fill in the blank c4403e083ff501f_19%	41,460	fill in the blank c4403e083ff501f_20%
Net income	$120,450	fill in the blank c4403e083ff501f_21%	$69,100	fill in the blank c4403e083ff501f_22%

2. The vertical analysis indicates that the costs other than selling expenses (cost of goods sold and administrative expenses) as a percentage of sales. As a result, net income as a percentage of sales . The sales promotion campaign appears to have been . While selling expenses as a percent of sales slightly, the cost was more than made up for by sales.