nal $40,000 for advertising. At the end of the year, Leif Grande, the Vertical Analysis of Income Statement For 2012, Felder Industries Inc. initiated a sales promotion campaign that included the expenditure of president is presented with the following condensed comparative income statements Fielder Industries Inc. Comparative Income Statement For the Year Ended December 31, 2012 and 2041 2012 $1.180.000 Sales Cost of goods sold Gross profit $1,300,000 682.500 613,600 $617,500 $566,400 $260.000 $183,800 169.000 172.000 $429.000 $365,800 Selling expenses Administrative expenses Total operating expenses Income from operations Other income Income before income tax Income tax expense $200,600 20.000 $168.500 70.000 $266.500 117.000 $149.500 $271.400 106.200 Het income $16.200 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 to one decimal place. Enter all amounts as positive numbers. Fielder Industries Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 2011 2012 Amount 2072 Percent 2011 Amount 20Y1 Percen Sales $1.300.000 $1.190.000 Cost of goods sold 682,500 51 1600 Gross profit $617.500 250.000 Selling expenses Administrative expenses Total operating expenses $425.000 Income from operations $158.50 Other income Income before income tax $256.500 Income tax expense Net income $265.200 C 2. The net income as a percent of sales has relationship between 2011 and 2072. Selling expenses successful. The increased expense All the costs and expenses, other than selling expenses, have maintained their approximate coutas a percent of sales percent of sales, however have Apparently, the new advertising campaign produced sufficient sales to maintain relative profitability. Thus, selling expenses as a percent of sales have