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 $2,280,000 $2,000,000 Cost of goods sold 1,960,000 1,750,000 Gross profit $320,000 $250,000 $156,500 $125,000 Selling expenses Administrative expenses 122,000 100,000 Total operating expenses $278,500 $225,000 Income before income tax $41,500 $25,000 Income tax expenses 16,600 10,000 Net income $24,900 $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. Winthrop Company Comparative Income Statement For the Years Ended December 31 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 $2,280,000 $2,000,000 % Cost of goods sold 1,960,000 1,750,000 % Gross profit $320,000 $250,000 % Selling expenses 156,500 125,000 % Administrative expenses 122,000 100,000 % Total operating expenses $278,500 $225,000 Income before income tax 41,500 25,000 % Income tax expense 16,600 10,000 % Net income $24,900 $15,000 %