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 Cost of goods sold Gross profit $2,240,000 $2,000,000 (1,925,000) (1,750,000) $315,000 $250,000 Selling expenses $(152,500) $(125,000) Administrative expenses (118,000) (100,000) Total operating expenses $(270,500) $(225,000) Income before income tax expense $44,500 $25,000 Income tax expense (17,800) Net income $26,700 (10,000) $15,000 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 your answ one decimal place. Winthrop Company Winthrop Company Comparative Income Statement For the Years Ended December 31 Line Item Description Sales Cost of goods sold Current Year Amount Previous Year Amount Increase Increase (Decrease) (Decrease) Amount Percent $2,240,000 $2,000,000 (1,925,000) (1,750,000) Gross profit $315,000 $250,000 Selling expenses (152,500) $125,000) Administrative expenses (118,000) (100,000) Total operating expenses (270,500) $(225,000) Income before income tax expense $44,500 $25,000 Income tax expense (17,000) (10,000) Net income $26,700 $15,000 Year When compared with the previous year. If required, round your answers t b. The net income for Winthrop Company increased between years. This increase was the combined result of an in cost of goods sold. The cost of goods sold increased at a than the percentage increase in sales in sales and a percentage rate than the increase in sales, thus causing the percentage increase in gross profit to be