Revenue and expense data for Bluestem Company are as follows: Year 2 Year 1 Administrative expenses $37,000 $20,000 Cost of merchandise sold 350,000 320,000 Income tax expense 40,000 32,000 Sales 800,000 700,000 Selling expenses 150,000 110,000 a. Prepare a comparative income statement, with vertical analysis, stating each item for both years as a percent of sales. Round percentages to one decimal place. Bluestem Company Comparative Income Statement For Years Ended December 31, Year 2 and Year 1 Year 2 Amount Year 2 Percent % % Year 1 Amount Year 1 Percent % % % % % % % P/ % Total operating expenses % % % % % % b. Complete the following regarding significant changes disclosed by the comparative income statement. The most significant increase in expenses is which offsets the decrease in resulting in the overall of net income.