Horizontal Analysis of the Income Statement Income statement data for Boone Company for two recent years ended December 31, are as follows: Current Year Previous Year Sales $540,000 $450,000 $ Cost of goods sold 460,200 390,000 Gross profit $79,800 $60,000 Selling expenses $22,000 $20,000 Administrative expenses 20,060 17,000 Total operating expenses $42,060 $37,000 Income before income tax $ 37,740 $23,000 Income tax expenses 15,100 9,200 Net income $22,640 $13,800 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. Boone Company Comparative Income Statement For the Years Ended December 31 Current year Amount Previous year Amount Increase (Decrease) Amount Increase (Decrease) Percent Sales $540,000 $450,000 90,000 20% Cost of goods sold 460,200 390,000 70,200 18 % $60,000 19,800 33 % 20,000 2,000 10% Gross profit $79,800 Selling expenses 22,000 Administrative expenses 20,060 Total operating expenses $42,060 17,000 3,060 18 % $37,000 5,060 13.7% Income before income tax $37,740 $23,000 14,740 64.1 % Income tax expense 15,100 9,200 5,900 64% Net income $22,640 $13,800 8,840 64 %