Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31, are as follows Current Year $799,800 685,800 $114,000 $34,510 30,480 $64,990 $49,010 19,600 $29,410 Previous Year $620,000 540,000 $80,000 $29,000 24,000 $53,000 $27,000 10,800 $16,200 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax Income tax expenses Net income 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 Cost of goods sold Gross profit Selling expenses $799,800 $620,000 685,800 540,000 $114,000 80,000 $34,510 $29,000 24,000 Administrative expenses3054005000 Total operating expenses $64990$53,000 Income before income tax $49,010 $27,000 19,600 10,800 $29,410 $16,200 30,480 Income tax expense Net income b. The net income for Winthrop Company increased between years. This increase was the combined result of an percentage percentage increase in gross profit to be in sales and in cost of goods sold. The cost of goods sold increased at a rate than the increase in sales, thus causing the than the percentage increase in sales