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 Sales $848,700 $690,000 600,000 Cost of goods sold Gross profit $90,000 Selling expenses $31,000 Administrative expenses 726,000 $122,700 $35,030 31,460 $66,490 $56,210 22,500 $33,710 Total operating expenses Income before income tax 26,000 $57,000 $33,000 Income tax expenses 13,200 Net Income $19,800 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 Sales $848,700 $690,000 Previous Not > Check My Work 2 more Check My Workeuses remaining eBook Show Me How Calculator Print Item 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 Sales $848,700 5690,000 % Cost of goods sold 726,000 600,000 Gross profit $122,700 $90,000 9 Selling expenses $35,030 $31,000 Administrative expenses 31,460 26,000 Total operating expenses $66,490 $57,000 9 Income before income tax $56,210 $33,000 99 Income tax expense 22,500 13,200 Net income $33,710 $19,000 in sales and rate than the increase in sales, thus causing the b. The net income for Winthrop Company increased between years. This increase was the combined result of an percentage in cost of goods sold. The cost of goods sold increased at a percentage increase in gross profit to be than the percentage increase in se 2 more Check My Work uses romaning