For 20Y6, Blue Buffalo Company initiated a sales promotion campaign that included the ex- penditure of an additional $60,000 for advertising. At the end of the year, Tamara Wasnuk, the president, is presented with the following condensed comparative income statement:

1.	BLUE BUFFALO COMPANY
	Comparative Income Statement
	For the Years Ended December 31, 20Y6 and 20Y5
				20Y6				20Y5
				Amount		Percent		Amount		Percent
		Sales		$1,545,000				$1,224,000
		Sales returns and allowances		45,000				24,000
		Net sales		$1,500,000				$1,200,000
		Cost of goods sold		960,000				780,000
		Gross profit		$540,000				$420,000
		Selling expenses		$285,000				$216,000
		Administrative expenses		90,000				96,000
		Total operating expenses		$375,000				$312,000
		Income from operations		$165,000				$108,000
		Other income		36,000				36,000
		Income before income tax		$201,000				$144,000
		Income tax expense (benefit)		42,000				28,800
		Net income (loss)		$159,000				$115,200

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.