Income statement data for Winthrop Company for two recent years ended December 31 are as follows Previous Year Current Year Sales $2,240,000 $2,000,000 Cost of goods sold (1.925,000) (1,750,000) Gross profit $315,000 $250,000 Selling expenses $(152,500) $(125,000) Administrative expenses (118,000) (100,000) Total operating expenses $(270,500) (225,000) Income before income tax expense $44,500 $25,000 Income tax expense (17,800) (10,000) Net Income $26,700 $15,000 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 your answers to one decimal place. Winthrop Company 1 Comparative Income Statement For the Years Ended December 311 Line Item Description Sales Current Year Amount Previous Increase Increase Year (Decrease) (Decrease) Amount Amount Percent $2,240,000 $2,000,000 " Cost of goods sold Gross profit Selling expenses a (1,925,000) (1,750,000) $315,000 $250,000 $(152,500) $125,000) Administrative expernes Total operating expenses (118,000) $(270,500) $(225,000) (100,000) 96 Income before income tax expense $44,500 $25,000 Income tax expense (17,800) (10,000) $26,700 $15,000 Net income b. The net income for Winthrop Company increased between years. This increase was the combined result of an be in cost of goods sold. The cost of goods sold increased at a than the percentage increase in sales in sales and a percentage rate than the increase in sales, thus causing the percentage increase in gross profit to