Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Current Year Previous Year $660,000 Sales Cost of goods sold $798,600 660,800 560,000 Gross profit $137,800 $100,000 Selling expenses $37,740 $34,000 Administrative expenses 34,510 29,000 Total operating expenses $72,250 $63,000 Income before income tax Income tax expenses $65,550 26,200 $39,350 $37,000 14,800 $22,200 Net income a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Previous Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent $798,600 $660,000 $ 660,800 560,000 Sales Cost of goods sold Gross profit $137,800 $100,000 Selling expenses $37,740 $34,000 Administrative expenses 34,510 29,000 Total operating expenses $72,250 $63,000 $ Income before income tax $65,550 $37,000 14,800 Income tax expense 26,200 Net income $39,350 $22,200