PR 17-2A Vertical analysis of income statement For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $50,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement: OBJ. 2 (Continued Chapter 17 Financial Statement Analysis Tri-Comic Company Comparative Income Statement V5. Num les in re sa For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 $1,500,000 $1,250,000 510,000475,000 $990,000 775,000 $ 270,000 200,000 156,250 450,000 356,250 s 540,000 418,750 50,000 $ 600,000 468,750 450,000375,000 $150,000 93,750 Sales Selling expenses Administrative expenses Total operating expenses .. Income from operations Other revenue Income before income tax Income tax expense.... Net income.. 180,000 . 60,000 Instructions 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. Round percentages to one decimal place. 2. To the extent the data permit, comment on the significant relationships revealed by the vertical analysis prepared in (1) PR 17-3A Effect of transactions