Income statement data for Boone Company for two recent years ended December 31, are as follows:

	Current Year			Previous Year
Sales	$396,000			$330,000
Cost of goods sold	330,400			280,000
Gross profit	$65,600			$50,000
Selling expenses	$17,600			$16,000
Administrative expenses	16,520			14,000
Total operating expenses	$34,120			$30,000
Income before income tax	$31,480			$20,000
Income tax expenses	12,600			8,000
Net income	$18,880			$12,000

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.

Boone Company
Comparative Income Statement
For the Years Ended December 31
	Current year Amount	Previous year Amount	Increase (Decrease) Amount	Increase (Decrease) Percent
Sales	$396,000	$330,000	$	%
Cost of goods sold	330,400	280,000		%
Gross profit	$65,600	$50,000	$	%
Selling expenses	17,600	16,000		%
Administrative expenses	16,520	14,000		%
Total operating expenses	$34,120	$30,000	$	%
Income before income tax	$31,480	$20,000	$	%
Income tax expense	12,600	8,000		%
Net income	$18,880	$12,000	$	%

b. The net income for Boone Company increased by 57.3% between years. This increase was the combined result of an in sales of 20% and percentage in cost of goods sold. The cost of goods sold increased at a rate than the increase in sales, thus causing the percentage increase in gross profit to be than the percentage increase in sales.