Horizontal Analysis of the Income Statement Income statement data for Boone Company for two recent years ended December 31, are as follows: Current Year Previous Year Sales $648,000 $540,000 Cost of goods sold 538,200 460,000 Gross profit $109,800 $80,000 Selling expenses $29,700 $27,000 Administrative expenses 27,140 23,000 Total operating expenses $56,840 $50,000 Income before income tax $52,960 $30,000 Income tax expenses 21,200 12,000 Net income $31,760 $18,000 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 Previous year Amount Increase (Decrease) Amount Increase (Decrease) Percent Sales $648,000 $540,000 Cost of goods sold 538,200 460,000 Gross profit $109,800 $80,000 Selling expenses 29,700 27,000 Administrative expenses 27,140 23,000 QQQIQOT Total operating expenses Income before income tax $52,960 Income tax expense 21,200 Net income $31,760 $50,000 $30,000 12,000 $18,000 Feedback