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 $403,000 $310,000 Cost of merchandise sold 332,800 260,000 Gross profit $70,200 $50,000 Selling expenses $21,600 $18,000 Administrative expenses 19,200 15,000 Total operating expenses $40,800 $33,000 Income before income tax expense $29,400 $17,000 Income tax expenses 11,800