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 $897,900 $730,000 Cost of goods sold 774,400 640,000 Gross profit $123,500 $90,000 Selling expenses $35,030 31,460 $31,000 26,000 Administrative expenses Total operating expenses $66,490 $57,000 Income before income tax Income tax expenses $57,010 22,800 $33,000 13,200 Net income $34,210 $19,800 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. 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. Increase (Decrease) Percent 18.7 % x Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Previous Increase year year (Decrease) Amount Amount Amount Amount Sales $897,900 $730,000 $167,900 Cost of goods sold 774,400 640,000 134,400 Gross profit $123,500 $90,000 $ 33,500 Selling expenses $35,030 $31,000 $ 4,030 Administrative expenses 31,460 26,000 5,460 17.4 % x 27.1 % X 11.5% x 17.4% x x Total operating expenses $66,490 $57,010 22,800 Income before income tax x $57,000 $ 9,490 $33,000 $ 24,010 13,200 9,600 $19,800 $14,410 14.3 % x 42.1 % X 42.1 % x Income tax expense Net income $34,210 x 42.1 % X