pany for two recent years ended December 31 are as follows: Current Year Previous Year Sales $1,938,000.00 Cost of goods sold Gross profit $1,700,000.00 1,462,000.00 $238,000.00 1,608,200.00 3329,800.00 567,800.00 49,280.00 Selling expenses Administrative expenses $60,000.00 44,000.00 Total operating expenses $117,080.00 $104,000.00 $134,000.00 Income before income tax $212,720.00 Income tax expense 8,500.00 13,090.00 $199,630.00 10 Net Income $125,500.00 A. Prepare a comparative income statement with horizontal analysis, indicating the increase (decreaso) for the current year when compared with the previous year. Round percentages to ono decimal place. B. What conclusions can be drawn from the horizontal analysis? Round the answers to one decimal place Prepare a comparative Income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. Round percentages to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 Increase (Decrease) Increase (Decrease) Percent 2 Current Year Previous Year Amount 3 Sales $1,938,000.00 4 Cost of goods sold 1,608,200.00 $329,800.00 5 Gross profit $1,700,000.00 1,462,000.00 $238,000.00 $60,000.00 44,000.00 $67,800.00 49,280.00 6 Selling expenses 1 Administrative expenses Total operating expenses 9 Income before income tax 10 Income tax expense $117,080.00 $104,000.00 $134,000.00 $212,720.00 13,090.00 $199,630.00 8,500.00 $125,500.00 11 Net income What can can be down from the horizontal analysis Round the answers to one decimal place The nation for Winthrop Company increased by in sales of between years. This increase was the combined result of an percentage in cost of goods sold and The cost of goods wild increased at rate than the increase in sales, thus causing the percentage increase in gross profit to be than the percentage increase in sales