Required: % % 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, 2012 and 2041 20Y2 20Y2 2041 2041 Amount Percent Amount Percent Sales $709,000 % $610,000 Cost of merchandise sold 361,590 % 341,600 % Gross profit $347,410 % $268,400 Selling expenses $141,800 % $115,900 % Administrative expenses 77,990 79,300 Total operating expenses $219,790 % $195,200 Income from operations $127,620 % $73,200 % Other revenue 21,270 % 36,600 % Income before income tax expense $148,890 % $109,800 % Income tax expense 56,720 1% 42,700 Net income $92,170 % $67,100 % % % % 0% 2. The vertical analysis indicates that the costs other than selling expenses (cost of merchandise sold and administrative expenses) as a percentage of sales. As a result, net income as a percentage of sales The sales promotion campaign appears to have been While selling expenses as a percent of sales slightly, the cost was more than made up for by sales