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	$552,000			$460,000
Cost of merchandise sold	460,200			390,000
Gross profit	$91,800			$70,000
Selling expenses	$25,300			$23,000
Administrative expenses	22,420			19,000
Total operating expenses	$47,720			$42,000
Income before income tax expense	$44,080			$28,000
Income tax expenses	17,600			11,200
Net income	$26,480			$16,800

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 (Decrease) Amount	Increase (Decrease) Percent
Sales	$552,000	$460,000	$fill in the blank db451d045f8e073_1	fill in the blank db451d045f8e073_2%
Cost of merchandise sold	460,200	390,000	fill in the blank db451d045f8e073_3	fill in the blank db451d045f8e073_4%
Gross profit	$91,800	$70,000	$fill in the blank db451d045f8e073_5	fill in the blank db451d045f8e073_6%
Selling expenses	$25,300	$23,000	$fill in the blank db451d045f8e073_7	fill in the blank db451d045f8e073_8%
Administrative expenses	22,420	19,000	fill in the blank db451d045f8e073_9	fill in the blank db451d045f8e073_10%
Total operating expenses	$47,720	$42,000	$fill in the blank db451d045f8e073_11	fill in the blank db451d045f8e073_12%
Income before income tax expense	$44,080	$28,000	$fill in the blank db451d045f8e073_13	fill in the blank db451d045f8e073_14%
Income tax expense	17,600	11,200	fill in the blank db451d045f8e073_15	fill in the blank db451d045f8e073_16%
Net income	$26,480	$16,800	$fill in the blank db451d045f8e073_17	fill in the blank db451d045f8e073_18%