Instructions For 2016, Indigo Company initiated a sales promotion campaign that included the expenditure of an additional $39,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement Indigo Company Comparative Income Statement For the Years Ended December 31, 2016 and 2015 2016 2015 1 Sales $850,000.00 $500,000.00 3 Cost of goods sold 340,000.00 210,000.00 4 Gross profit $510,000.00 $290,000.00 $90,000.00 Selling expenses $170,000.00 42,500.00 35,000.00 6 Administrative expenses 7 $125,000.00 $212,500.00 Total operating expenses $165,000.00 Income from operations $297,500.00 85,000.00 50,000.00 9 Other income $382,500.00 $215,000.00 10 Income before income tax 229,500.00 135,000.00 11 Income tax expense 12 Net income $80,000.00 $153,000.00 Required: 1. Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to sales for each of the years. Round your percentages to one decimal place. Enter all amounts as positive numbers 2. To the extent the data permit, comment on the significant relationships revealed by the vertical analysis prepared in (1) Prepare an income statement in comparative form, stating each term for both years as a percent of sales. Round your percentages to one decimal place. Enter al amounts as positive numbers Indigo Company Comparative Income Statement For the Years Ended December 31, 2016 and 2015 2016 2016 2015 2015 Amount Percent Amount Percent Sales $850,000.00 1000% $500,000.00 100.0% Cost of goods sold 54000000 210,000.00 Gross profit 5510,000.00 5290,000.00 Selling expenses $170,000.00 590,000.00 7 Administrative expenses 42.500.00 35.00000 * Total operating expenses $212,500.00 $125,000.00 Income from operations 5297,500.00 $165,000.00 1 Other income 35.000.00 50,000.00 11 Income before income tax 5582,500.00 $215,000.00 t non Indigo Company Comparative Income Statement For the Years Ended December 31, 2016 and 2015 2016 2016 2015 2015 Amount Percent 100.0% 3 Sales Percent 100.0% Amount $500,000.00 210,000.00 $850,000.00 340,000.00 4 Cost of goods sold 5 Gross profit $510,000.00 $290,000.00 * Selling expenses $170,000.00 $90,000.00 7 Administrative expenses 42,500.00 35,000.00 8 Total operating expenses $125,000.00 9 Income from operations 10 Other income $212,500.00 $297,500.00 85,000.00 $382,500.00 229,500.00 $153,000.00 $165,000.00 50,000.00 $215,000.00 135,000.00 11 Income before income tax 12 Income tax expense $80,000.00 13 Net income