Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Previous Yea $400,000 350,000 $50,000 $18,000 15,000 $33,000 $17,000 6,800 $10,200 Current Year $512,000 441,000 $71,000 $21,240 18,900 $40,140 $30,860 12,300 $18,560 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax Income tax expenses Net income 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 Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Previous Increase Increase year (Decrease) (Decrease) year Amount Amount Amount Percent Sales Cost of goods sold Gross proft Selling expenses Administrative expenses $512,000 $400,000 441,000 350,000 $71,000 $50,000 $21,240 $18,000 15,000 Total operating expenses $40,140 $33,000 Income before income tax $30,860 $17,000 6,800 $18,560 $10,200 18,900 12,300 Income tax expense Net income in sales and b. The net income for Winthrop Company increased between years. This increase was the combined result of an in cost of goods sold. The cost of goods sold increased at a rate than the percentage increase in sales, thus causing the percentage increase in gross profit to be than the percentage increase in sales