Please see below.

Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales $533,000 $469,000 Cost of goods sold 287,820 225,120 Selling expenses 95,940 98,490 Administrative expenses 106,600 89,110 Income tax expense 15,990 23,450 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 Amount Current year Percent Previous year Amount Previous year Percent Sales $533,000 100 % $469,000 Cost of goods sold 287,820 54 225,120 Gross profit 245,180 46 Selling expenses 95,940 98,490 Administrative expenses 106,600 2 89,110 Total operating expenses Income from operations Income tax expense 15,990 23,450 Net income b. The vertical analysis indicates that the cost of goods sold as a percent of sales by 6 percentage points, while selling expenses by 3 percentage points, and administrative expenses by 1 percentage points. Thus, net income as a percent of sales by 2 percentage points