Horizontal Analysis of the Income Statement Income statement data for Boone Company for two recent years ended December 31, are as follows:

Horizontal Analysis of the Income Statement Income statement data for Boone Company for two recent years ended December 31, are as follows: Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax Income tax expenses Net income Current Year $947,200 806,400 $140,800 $41,300 37,800 $79,100 $61,700 24,700 $37,000 Previous Year $740,000 640,000 $100,000 $35,000 30,000 $65,000 $35,000 14,000 $21,000 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 Boone Company Comparative Income Statement For the Years Ended December 31 Current year Amount $947,200 806,400 $140,800 41,300 Previous year Amount Increase (Decrease) Amount Increase (Decrease) Percent Sales Cost of goods sold Gross proft Selling expenses Administrative expenses 37,800 Total operating expenses $79,100 Income before income tax $61,700 Income tax expense Net income $740,000 640,000 $100,000 35,000 30,000 $65,000 $35,000 14,000 $21,000 24,700 $37,000 b. The net income for Boone Company increased by 76.2% between years. This increase was the combined result of an in sales of 28% and percentage in cost of goods sold. The cost of goods sold increased at a rate than the increase in sales, thus causing the percentage increase in gross profit to be than the percentage increase in sales