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 merchandise sold $2,280,000 $2,000,000 1,960,000 1,750,000 Gross profit Selling expenses $320,000 $250,000 $156,500 $125,000 Administrative expenses 122,000 100,000 Total operating expenses $278,500 $225,000 Income before income tax expense $41,500 $25,000 Income tax expenses Net income 16,600. $24,900 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 to one decimal place. Sales Cost of merchandise sold Gross profit Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Previous year year Amount Amount $2,280,000 $2,000,000 1,960,000 1,750,000 $320,000 $250,000 Increase Increase (Decrease) (Decrease) Amount Percent % % % $156,500 $125,000 % Selling expenses Check My Work Previous Next>