Income statement data for Winthrop Company for two recent years ended December 31 are as follows: 1 Current Year Previous Year 2 Sales 3 Cost of goods sold $1,836,800.00 $1,640,000.00 1,556,442.00 1,402,200.00 Gross profit $280,358.00 $237,800.00 5 Selling expenses $79,800.00 $70,000.00 6 Administrative expenses 48,840.00 44,000.00 7 Total operating expenses $128,640.00 $114,000.00 8 Income before income tax $151,718,00 $123,800.00 9 Income tax expense 12,300.00 8,200.00 10 Net income $139,418,00 $115,600.00