Instructions Income statement data for Winthrop Company for two recent years ended December 31 are as follows: 1 Current Year 2 Sales $1,993,600.00 1,674,090.00 $319,510.00 Previous Year $1,780,000.00 1,521,900.00 $258,100.00 $73,450.00 48,840.00 3 Cost of goods sold 4 Gross profit Selling expenses 6 Administrative expenses 7 Total operating expenses a Income before income tax 9 Income tax expense 10 Net income $65,000.00 44,000.00 $109,000.00 $122,290.00 $197,220.00 $149,100.00 8,900.00 13,884.00 $183,336.00 $140,200.00 A Prepare a comparative income statement with horizontal analysis, indicating the increase (decresse) for the current year when compared with the previous year. Round percentages to one decimal place. B. What conclusions can be drawn from the horizontal analysis? Round the answers to one decimal place. Income Statement Prepare a comparative income statement with horizontal analysis indicating the increase (decresse) for the current year when compared with the previous year. Round percentages to one decimal place. Question not attempted. Score: 0/63 Winthrop Company Comparative Income Statement For the Years Ended December 31 1 Increase (Decrease) Increase (Decrease) Percent 2 Current Year Amount 3 Sales 4 Cost of goods sold Previous Year $1,780,000.00 1,571,900.00 $758,100.00 $65,000.00 5 Gross profit Selling expenses $1,995,600.00 1,674,090.00 $319,510.00 $75,450.00 43,840.00 $122,290.00 $197,220.00 13,884.00 7 Administrative expenses 44,000.00 8 Total operating expenses 9 Income before income tax $109,000.00 $149,100.00 8,900.00 10 Income tax expense 1: Net income $183,336.00 $140,200.00 Final Question What conclusions can be drawn from the horizontal analysis? Round the answers to one decimal place. The net income for Winthrop Company increased by % between years. This increase was the combined result of an increase in sales of % and lower percentage increase in cost of goods sold