Instructions Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales $4,000,000 $3,600,000 Cost of goods sold 2,280,000 1,872,000 Selling expenses 600,000 648,000 Administrative expenses 520,000 360,000 Income tax expense 240,000 216,000 A. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Enter all amounts as positive numbers. B. Comment on the significant changes disclosed by the comparative income statement. Income Statement For the Years Ended December 31 Current year Current year Previous year Previous year 2 3 Sales 4 Cost of goods sold Amount Percent Amount Percent $4,000,000.00 $3,600,000.00 2,280,000.00 1,872,000.00 5 Gross profit $1,720,000.00 $1,728,000.00 Selling expenses 600,000.00 648,000.00 7 Administrative expenses $20,000.00 360,000.00 Total operating expenses $1,120,000.00 $1,008,000.00 Income from operations 600,000.00 720,000.00 10 Income tax expense 240,000.00 216,000.00 11 Net income $360,000.00 $504,000.00