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 $923,000 $710,000 Cost of goods sold 768,000 600,000 Gross profit $155,000 $110,000 Selling expenses $46,800 $39,000 Administrative expenses 42,240 33,000 Total operating expenses $89,040 $72,000 Income before income tax $65,960 $38,000 Income tax expenses 26,400 15,200 Net income $39,560 $22,800 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 $923,000 $710,000 $ % Cost of goods sold 768,000 600,000 % Gross profit $155,000 $110,000 $ % Selling expenses 46,800 39,000 % Administrative expenses 42,240 33,000 % Total operating expenses $89,040 $72,000 $ % Income before income tax $65,960 $38,000 $ % Income tax expense 26,400 15,200 % Net income $39,560 $22,800 $ %