Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31, are as f Previous Year Current Year Sales $572,000 $440,000 Cost of goods sold 482,600 380,000 Gross profit $89,400 $60,000 Selling expenses $26,400 $22,000 Administrative expenses 24,320 19,000 Total operating expenses $50,720 $41,000 Income before income tax $38,680 $19,000 7,600 Income tax expenses 15,500 $23,180 $11,400 Net income a. Prepare a comparative income statement with horizontal analysis, indicating the increase (de Winthrop Company Comparative Income Statement For the Years Ended December 31 Previous Current Increase Increase (Decrease) Amount (Decrease) year Amount year Amount Percent 132,000 V 23.1 % X Sales $572,000 $440,000 102,600 V 21.3 % X 482,600 380,000 Cost of goods sold 32.9 % X $89,400 $60,000 29,400 Gross profit 16.7 % X Selling expenses $22,000 $ $26,400 4,400 5,320 21.9 % X 24,320 19,000 Administrative expenses 19.2 % X $50,720 $41,000 9,720 Total operating expenses 50.9 % X $19,000 $ Income before income tax $38,680 19,680 7,600 51 % X 7,900 15,500 Income tax expense $23,180 $11,400 11,780 50.8 % X Net income Feedback >>> >