Please answer the following question

Question 2:

The vertical analysis indicates that the costs other than selling expenses (cost of goods sold and administrative expenses)___improved/deteriorated________ as a percentage of sales.

As a result, net income as a percentage of sales _____increased/decreased______.

The sales promotion campaign appears to have been_____successful/unsuccessful____

While selling expenses as a percent of sales _____increased/deceased____slightly, the____increased/decreased_____ cost was more than made up for by ____increased/decreased____ sales.

Financial Statement Analysis Problem ( eBook Vertical Analysis of Income Statement For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $21,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement: Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $753,000 $648,000 Cost of goods sold 338,850 330,480 Gross profit $414,150 $317,520 Selling expenses $150,600 $123,120 Administrative expenses 82,830 84,240 Total operating expenses $233,430 $207,360 Income from operations $180,720 $110,160 Other income 37,650 19,440 Income before income tax $218,370 $129,600 Income tax expense 90,360 51,840 Net income $128,010 $77,760Required: 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. Enter percentages as whole numbers. Enter all amounts as positive numbers. Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 Amount 20Y2 Percent 20Y1 Amount 20Y1 Percent Sales $753,000 % $648,000 Cost of goods sold 338,850 1% 330,480 % Gross profit $414,150 $317,520 %% Selling expenses 150,600 123,120 % Administrative expenses 82,830 84,240 1% Total operating expenses $233,430 $207,360 % Income from operations $180,720 $110,160 Other income 37,650 19,440 % Income before income tax $218,370 $129,600 Income tax expense 90,360 51,840 Net income $128,010 $77,760 1% 2. The vertical analysis indicates that the costs other than selling expenses (cost of goods sold and administrative expenses) as a percentage of sales. As a result, net income as a percentage of sales 7. The sales promotion campaign appears to have been 7. While selling expenses as a percent of sales slightly, the cost was more than made up for by sales. Next