OBJ.2 Horizontal analysis of the income statement Income statement data for Winthrop Company for two recent years ended December 31 EX 17-5 Previous Year Current Year are as follows $2,000,000 $2,280,000 nommo1,960,000 $320,000 1,750,000 $ 250,000 $ 125,000 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses $156,500 100,000 122,000 $278,500 $ 225,000 $41,500 s 25,000 Income before income tax 16,600 10,000 Income tax expense $ 24,900 Net income $ 15,000 a. Prepare a comparative income statement with horizontal analysis, indicating the in- crease (decrease) for the current year when compared with the previous year. Round percentages to one decimal place. What conclusions can be drawn from the horizontal analysis? b