percentage. Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 Current year Current year Previous year Previous year Amount Percent Amount Percent 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) 96 (216,000) % b. The vertical analysis indicates that the cost of goods sold as a percent of sales by 3 percentage points, and administrative expenses expenses by 5 percentage points, while selling by 3 percentage points. Thus, net income as a percent of sales by 5 percentage points.