Page 1 of 8 EX.17-01.ALGO (Algorithmic) Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales Cost of goods sold Selling expenses Administrative expenses Income tax expense $459,000 261,630 78,030 87,210 13,770 $404,000 206,040 80,800 68,680 20,200 a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 Current year Previous year Previous year $404,000 206,040 Current year Amount Percent Percent Sales Cost of goods sold 261,630 Selling expenses 78,030 80,800 Administrative expenses 87,210 68,680 Income tax expense 13,770 9% 20,200 b. The vertical analysis indicates that the cost of goods sold as a percent of sales by 6 percentage points, while selling expenses administrative expenses sales by 3 percentage points, and by 2 percentage points. Thus, net income as a percent of by 3 percentage points