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 $708,000 $590,000 Cost of merchandise sold 590,000 500,000 Gross profit $118,000 $90,000 Selling expenses $33,000 $30,000 Administrative expenses 29,500 25,000 Total operating expenses $62,500 $55,000 Income before income tax expense $55,500 $35,000 Income tax expenses 22,200 14,000 Net income $33,300 $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. Winthrop Company Comparative Income Statement For the Years Ended December 31 Current year Amount Previous year Amount Increase Increase (Decrease) (Decrease) Amount Percent Sales $708,000 $590,000 $1 % Cost of merchandise sold 590,000 500,000 % Gross profit $118,000 $90,000 % Selling expenses $33,000 $30,000 $ % Administrative expenses 29,500 25,000 % Total operating expenses $62,500 $55,000 $ % Income before income tax expense $55,500 $35,000 $ % Income tax expense 22,200 14,000 % Net income $33,300 $21,000 %